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2021 (11) TMI 14 - AT - Central ExciseReversal of CENVAT Credit - common input/input services used for taxable as well as exempt goods - manufacture of dutiable Spray Nozzles and trading of goods such as pipes and compressors - non-maintenance of separate records - Rule 6(3A) of the CCR 2004 - period of July 2010 to March 2015 - HELD THAT:- In one of the recent orders, learned Ahmedabad Bench of CESTAT in the case of COMMISSIONER OF CENTRAL EXCISE & ST, RAJKOT VERSUS M/S. RELIANCE INDUSTRIES LIMITED [2019 (3) TMI 784 - CESTAT AHMEDABAD] has held that As per clause (b)(ii) & (iv), it is clearly provided that entire credit in respect of receipt and use of inputs/input service is allowed when such input and input service is used in dutiable final products and taxable service. However, nowhere in Rule 6 it is provided that the input or input service used in dutiable goods shall not be allowed. Further it is observed that the adjudicating authority has raised the demand of ₹ 5,94,034/- inter alia alleging that there was a delay in exercising option, which is only as per the directions of this Bench in the first round, which should have been given by the adjudicating authority himself. Moreover, the demand raised for a mere delay in exercising the option is highly disproportionate since the delay, if at all, is a mere irregularity considering the facts of this case and the same may, at the most, attract some interest which perhaps has even been paid by the appellant while reversing the amount. Appeal allowed - decided in favor of appellant.
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