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2009 (8) TMI 510 - HC - Central ExciseCenvat Credit- inputs- “1. Whether Tribunal is justified in vacating the demand when it has been proved on the record that party was availing Modvat credit on the inputs namely Residual Furnace Oil (R.F.O.) used as input for generation of steam used for manufacturing of dutiable as well as exempted goods and party was not maintaining any separate accounts of the said inputs being used in manufacture of exempted goods as per provisions of Rules 57CC(9)? 2. Whether party is liable to pay an amount of Rs.1,79,52,77,469/- [Rupees one crore seventy-nine lakh (sic) only] which is equivalent to 8% of the price of said exempted goods in terms of Rule 57CC(9) of the Rules, which include the credit of Rs.1,80,49,568/- (Rupees one crore eighty lakh forty-nine thousand five hundred sixty-eight only)?” In the light of the decision of CCE v. Super Auto (I) Ltd., 2008 (221) E.L.T. 41 (P & H) wherein, after considering Rule 57CC of the Excise Rules it has been held that in cases where inputs are intended to be used as fuel, the provision of sub-rule (9) of Rule 57CC of the Excise Rules would not apply and the assessee would be entitled to avail credit of fuels even though part of it is used to manufacture of exempted final products. Therefore, following the same reasoning and principle of law, especially when Rule 6 of the Rules is pari materia with Rule 57CC of the erstwhile Excise Rules, we have no other option but to dismiss the instant appeal.
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