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2018 (8) TMI 1440 - CESTAT HYDERABADCENVAT Credit - common inputs used in manufacturing activity of dutiable products as well as exempt products - Rule 6 of the CENVAT Credit Rules, 2004 - maintenance of separate records - It is the submission of appellant herein that he has in fact gone a step ahead and had availed CENVAT credit attributable to those inputs which are used for manufacturing of dutiable goods - Held that:- If assessee is required to maintain meticulous records of the consumption of materials used for manufacturing of bulk drugs and drug intermediates, we do not find any reason to hold that consumption of inputs for the manufacturing of dutiable goods needs to be done in a different way. It can be seen from the provisions of Rule 6 that the entire emphasis of the said provisions are for non-availment of CENVAT credit attributable to the inputs consumed in the manufacturing of exempted goods, the procedure mentioned in Rule 6(3), envisages one of the ways of maintaining separate accounts for receipt of consumption of inputs for dutiable and exempted goods - the system adopted by the appellant is also resulting in bifurcated availment of credit only in respect of the inputs used in the manufacturing of dutiable goods, which needs to be accepted. Similar/identical issue came up before the Tribunal in the case of IPCA Laboratories Ltd [2015 (10) TMI 2325 - CESTAT NEW DELHI] wherein the Bench held that the appellant therein having not taken and foregone the CENVAT credit attributable to the quantum of the input services based upon the turnover of the exempted products cannot be faulted with. Appeal allowed - decided in favor of appellant.
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