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2010 (7) TMI 144 - HC - Central ExciseCenvat / Modvat Credit – dutiable and exempted goods - credit on furnace oil - The company was availing credit on the whole of furnace oil irrespective of whether it was used in manufacture of dutiable goods or exempt goods. Show cause notice was issued to the company asking them as to why the credit should not be denied to them because they were availing credit of the full amount irrespective of the fact whether they were manufacturing exempted goods or dutiable goods as prescribed under Rule 57 I of the Central Excise Rules, 1944. – Held that: - the legal effect of Sub-rule (1) has to be applied to all inputs including fuel-inputs, only exception being non-fuel-inputs, for which one has to maintain separate accounts or in its absence pay 8% /10% of the total price of the exempted final products. Therefore, Sub-rule (1) shall apply in respect of goods used as "fuel" and on such application, the credit will not be permissible on such quantity of fuel which is used in the manufacture of exempted goods – decision of SC in Commissioner of Central Excise Vs. Gujarat Narmada Fertilizers Co. Ltd. [2009 -TMI - 34349 - SUPREME COURT] followed – decided in favor of revenue
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