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2022 (3) TMI 358 - AT - Central ExciseReversal of proportionate credit - common inputs and input services consumed in by-product while manufacturing the final goods - credit on the invoices issued prior to 01/09/2014 within six months after the issuance of the Notification No. 21/2014 CE (NT) dated 11/07/2014. CENVAT Credit on common inputs and input services consumed in by-product - HELD THAT:- The said issue has been settled by the Tribunal in the case of M/S ANIL PRODUCTS LTD. VERSUS CCE AHMEDABAD [2011 (4) TMI 796 - CESTAT, AHMEDABAD] and the said order has been affirmed by the Hon’ble Gujarat High Court in COMMISSIONER CENTRAL EXCISE AND CUSTOMS VERSUS ANIL PRODUCTS LTD. [2013 (10) TMI 798 - GUJARAT HIGH COURT] where it was held that As per RALLIS INDIA LTD. Versus UNION OF INDIA [2008 (12) TMI 46 - HIGH COURT BOMBAY] it is held that where common inputs are used in the manufacture of dutiable and exempted product, liability to pay amount under erstwhile Rule 57CC of Central Excise Rules, 1944 arises only for product and not for waste/byproduct. As find from the impugned order that the exempted products are admittedly in the nature of byproduct/ waste/residue arising during the course of manufacture of dutiable final product, the ratio of above decision of Mumbai High Court would squarely apply to the same. Thus, the provisions of Rule 6 are not applicable to the appellants in these cases. Therefore, the appellants are not required to reverse the proportionate cenvat credit used in by-product while manufacturing their final product. Accordingly, the demand on the said count is set aside. Whether the appellant can avail cenvat credit on the invoices issued prior to 01/09/2014 within six months after the issuance of the Notification No. 21/2014 CE (NT) dated 11/07/2014 or not? - HELD THAT:- The issue has already been settled and no more res integra in the case of BHARAT ALUMINIUM COMPANY LIMITED VERSUS JOINT COMMISSIONER OF CENTRAL TAX, GOODS & SERVICE TAX [2019 (7) TMI 1084 - CESTAT NEW DELHI] where it was held that the six month limitation provided with effect from 01/09/2014 would not apply to the cenvatable invoices issued prior to said date - thus the appellants have correctly taken the cenvat credit on 18/09/2014 for the invoices issued prior to 01/09/2014. Appeal allowed - decided in favor of appellant.
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