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2024 (1) TMI 389 - AT - Central ExciseCENVAT Credit - taxable as well as exempt goods - availing cenvat credit of central excise duty on inputs going into the manufacture of medicaments which were chargeable to central excise duty and did not avail cenvat credit of central excise duty paid on inputs which were going into the manufacture of medicaments which were exempted - HELD THAT:- The appellant had debited entire cenvat credit availed on account of service tax paid on input services, even if a part of the input services were utilized in the manufacture of dutiable final products. It is also noted that central excise duty paid on inputs which were going into the manufacture of exempted final products was not availed by the appellant. This Tribunal in the case of COMMISSIONER OF C. EX. & S.T., UDAIPUR VERSUS SECURE METERS LTD. [2016 (6) TMI 1260 - CESTAT NEW DELHI] has held that even if subsequent to clearance, the availed cenvat credit is debited, then it is as if the cenvat credit was never availed. The said view of this Tribunal was affirmed by Hon’ble Rajasthan High Court in UNION OF INDIA VERSUS SECURE METERS LTD. [2017 (2) TMI 1350 - RAJASTHAN HIGH COURT]. Thus, the appellant had not availed cenvat credit at all for the reason that it had debited the entire availed cenvat credit. Therefore, the question of recovery of 5% or 10% of the value of the exempted goods does not arise. The impugned order set aside - As a result, the demand confirmed and penalty imposed on the appellant and penalty imposed on the other appellant are set aside - appeal allowed.
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