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2017 (12) TMI 1247 - AT - Central ExciseCENVAT credit - Naptha - case of the department is that in terms of provisions of Rule 6(1) of CCR, Cenvat credit on duty paid on the Naphtha is not admissible to them as the same is used in the manufacture of exempted final products, viz. Fertilisers - Held that: - Ld. Counsel has raised the issue of quantification dispute of the Cenvat credit on Naphtha on the basis that other than the Naphtha some other fuel such as natural gas, furnace oil were used. Accordingly, quantum of Naphtha against total generation of steam will stand reduced, however this being matter of fact, has to be verified - matter may be sent to the adjudicating authority for verification of the re-quantification done by the appellant. Penalty u/r 15 of CCR - Held that: - It is admitted that appellant have availed wrong credit as provision of Rule 6(1) is very explicit and there is no confusion that the Cenvat credit in respect of input used in the exempted goods is not available - there is clear contravention of the Rule 6(1) - penalty upheld. Appeal allowed in part by way of remand.
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