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2016 (12) TMI 215 - AT - Central ExciseCENVAT credit - liability to pay amount of 10% of the value of exempted goods - goods cleared following chapter X - common input and input services in the manufacture of exempted goods as well as dutiable goods without maintaining separate accounts as envisaged under Rule 6(2) of CENVAT Credit Rules, 2004 - Sulphuric Acid classifiable under Central Excise Tariff Heading 2807 00 10 of the First Schedule to the Central Excise Tariff Act, 1985 - Held that: - the appellant cleared the goods without payment of duty not because the goods were per se exempted goods. Sulphuric acid is leviable to excise duty. Only on following the procedure under chapter X does the appellant be eligible to clear the goods without payment of duty. Thus the exemption from payment of duty is based upon fulfillment of conditions by the appellant or the buyer. Therefore at the time of manufacture the appellant cannot ascertain with full confidence that the end product is exempted from duty. The exemption being contingent upon conditions, it cannot be said to warrant a situation to maintain separate accounts. The demand raised alleging that pre-fabricated construction and stationary pre-cooling equipments cleared without payment of duty on the strength of C.T-2 certificate are exempted goods is not sustainable - demand not sustainable - appeal allowed - decided in favor of appellant.
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