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2022 (11) TMI 40 - AT - Central ExciseCENVAT Credit - common inputs used in manufacture of taxable as well as exempt goods - demand @ 8% of the value of exempted goods proposed in terms of Rule 57 AD(2)(b) of Central Excise Rules, 1994 and and rule 6(3)(b) of Cenvat Credit Rules, 2002 and 2004 - HELD THAT:- The provision of erstwhile Rule 57 AD of Central Excise Rules, 1944 and Rule 6(3)(b) of Cenvat Credit Rules, 2002/2004 clearly stipulates that the cenvat credit in respect of input used in the manufacture of exempted final product is not admissible. It is also found that the entire objective of allowing the cenvat credit is to avoid the cascading effect of duty on the final product. When the final product is not dutiable, there is no reason to allow the cenvat credit on the inputs used in such final products. Therefore, the adjudication order is absolutely proper and legal, which does not require any interference. Appeal dismissed.
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