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2019 (3) TMI 106 - AT - Central ExciseGoods supplied as donation for earthquake relief - Benefit of exemption under N/N. 2/2001-CE and 16/2001-CE. - Held that:- The goods supplied as donation for earthquake relief are exempted - In the appellant’s case, even though the clinker was not supplied but though the cement supplied contains the clinker and therefore, it is clear that clinker is deemed to have been supplied for earthquake relief. Therefore, the appellant are entitled for the exemption under Notification No. 2/2001-CE. CENVAT Credit - common input used in dutiable as well as exempt goods - fuel - separate accounts for fuel was not maintained as per Rule 6(2) of Cenvat Credit Rules which requires maintenance of separate accounts except for the inputs intended to be used as fuel - Held that:- The only lapse is that the appellant have availed and retained Cenvat credit on fuel. Though the appellant have discharged obligation prescribed under Rule 6 (2) of Cenvat Credit Rules, 2004 but by availing Cenvat credit on fuel, the obligation under sub Rule 1 of Rule 6 of Cenvat Credit Rules, 2004 has not been discharged. In terms of Rule 6(1) of Cenvat Credit Rules, 2004, if the appellant have reversed full Cenvat credit attributed to the goods cleared under Notification No. 16/2001-CE, the appellant become eligible for exemption - Since, the ld. Counsel has agreed to reverse the credit, we direct the appellant as well as the Adjudicating Authority to ensure the reversal of Cenvat credit on fuel attributed to the goods cleared under exemption Notification No. 2/2001-CE and 16/2001-CE. Appeal allowed by way of remand.
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