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2019 (12) TMI 519 - CESTAT MUMBAIReversal of Cenvat Credit - electricity generated during the course of manufacture of sugar and molasses - non-maintenance of separate account for usage of the inputs and input services used for manufacture of electricity - Rule 6(3) of the CENVAT Credit Rules, 2004 - HELD THAT:- The same issue came up before the Tribunal in the case of Jakarya Sugars Ltd v. Commissioner of Central Excise, Pune – II [2018 (5) TMI 1665 - CESTAT MUMBAI] wherein it was held that provisions of Rule 6 of CENVAT Credit Rules, 2004 are not applicable to the facts of the case. Tribunal held that Rule 6 (3) (i) is applicable only when a common input, on which cannot availed is used in the manufacture of exempted and dutiable goods - For the generation of electricity, except the use of bagasee no any cenvatable input is used. Therefore, the Rule 6 does not come into play. The provisions of Rule 6(3) of CENVAT Credit Rules, 2004 are not applicable to the facts of the case - demand of 6% of the value of electricity on the appellant is not sustainable - Appeal allowed - decided in favor of appellant.
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