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2019 (2) TMI 341 - AT - Central ExciseCENVAT Credit - inputs used in manufacturing both dutiable and as also exempted final product - non-maintenance of separate records or not - case of appellant is that two separate records were being maintained by them in terms of Rule 6 of Cenvat Credit Rules - Rule 6 of Cenvat credit Rules - Held that:- If an assessee is availing the credit only in respect of the raw materials used for manufacture of dutiable products and no credit is being taken on the inputs used for exempted final product, such legislative intent gets satisfied and the provisions of Rule 6 which disallow taking of such credit gets fully complied with - As such, simple non-maintenance of accounts in respect of both the types of final products and the use of the raw materials in the manufacture of the same, cannot be adopted as a ground or a reason for denial of the benefit which is otherwise available and which an assessee has satisfied. However, the fact is that the inputs were common for both the types of products and the appellant was adjusting the credit on fortnight basis depending upon percentage of the production of dutiable as well as exempted products - Admittedly, the adjudicating authority has not verified such maintaining of records, inasmuch as, he has denied the benefit in principle itself. As such, the matter needs to go back for verification of the appellants claim of availment of credit only in respect of inputs used for manufacture of dutiable products - matter on remand. CENVAT Credit - invoices issued by M/s Parle Biscuits Ltd. as ISD - Held that:- By merely doing the job work for M/s Parle, the appellant has not become a unit of M/s Parle Biscuits Ltd. In terms of Rule 7, an ISD is authorized to distribute the Cenvat credit of service tax only to its own unit and not to the job worker - a job worker is not entitled to avail the credit on the basis of input invoices issued by the principal manufacturer as ISD - the entire demand is within limitation and the same is upheld. Appeal allowed in part and part matter on remand.
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