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2019 (10) TMI 815 - AT - Central ExciseCENVAT Credit - common input/ input services used for manufacture of electricity which is an exempted product - non-maintenance of separate records - Rule 6 of CCR 2004 - HELD THAT:- In the present case, the electricity was generated by use of the waste products and therefore Rule 6 of the CCR is not applicable in view of the judgment of the Hon’ble Apex Court in the case of UNION OF INDIA & OTHERS VERSUS M/S. HINDUSTAN ZINC LTD. [2014 (5) TMI 253 - SUPREME COURT] - Further it is found that coal ash / Dolo char is a residual waste arising out of the burning of coal which cannot be said to be a manufacture of final product. Both the authorities have ignored the amendment introduced w.e.f. 01/04/2016 by addition of Rule 6(3AA) which permits the assessee to reverse / pay proportionate CENVAT credit relating to common input or attributable to input services and in the present case, the appellant is making use of this sub-rule and has paid the amount of ₹ 11,23,096/- along with applicable interest of ₹ 4,86,007/- vide various challans enclosed which according to me, satisfied the requirement of Rule 6(3A). Consequently, the demand of 6% of the value of electricity sold to the GESCOM is not sustainable in law. Appeal allowed - decided in favor of appellant.
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