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2015 (10) TMI 1959 - CESTAT NEW DELHIDenial of CENVAT Credit - Rule 6(3)(b) of the Cenvat Credit Rules, 2002/2004 - Held that:- Initially credit of ₹ 84,783/- had been taken in respect of certain chemicals for generation of steam and while a part of the steam was used within the factory, the remaining quantity of steam was being sold out. The steam is exempt from duty. Rule 6(3) would come into picture only if common Cenvat credit availed inputs have been used in or in relation to the manufacture of dutiable final products as well as exempted final products and in accordance with the provisions of Rule 6(2) of the Rules, separate accounts and inventories of the inputs used for the manufacture of dutiable as well as exempted final products have not been maintained. In this case, though the initially credit was taken on the chemicals used for generation of steam, the same was subsequently reversed on 19-1-2005 and this fact is not disputed. Once the credit taken is reversed without using the same, the provisions of Rule 6(2) of the Cenvat Credit Rules would not be applicable. If the provisions of Rule 6(2) are not applicable, Rule 6(3) would also be inapplicable. The entire duty demand under Rule 6(3) of the Rules is without any basis. The impugned order is, therefore, set aside. - Decided in favour of assessee.
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