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2020 (3) TMI 307 - AT - Central ExciseCENVAT Credit - inputs or input services attributable to both exempted goods/exempted services and dutiable goods and taxable services - whether the total credit that should be taken for calculation in terms of Cenvat Credit Rule 6 (3A) should be restricted to only common inputs or common input services only? HELD THAT:- The appellant’s case is covered by the decision of the Ahmedabad Tribunal in the case of Commissioner of Central Excise & ST, Rajkot Vs. Reliance Industries Ltd. [2019 (3) TMI 784 - CESTAT AHMEDABAD] wherein it had been held that nowhere in Rule 6 it is provided that the input or input service used in dutiable goods shall not be allowed. The Revenue is only interpreting the term “total Cenvat credit” provided under the formula. If the whole Rule 6(1)(2)(3) is read harmoniously and conjointly, it is clear that “Total Cenvat Credit” for the purpose of formula under Rule 6(3A) is only total Cenvat credit of common input service and will not include the Cenvat credit on input/ input service exclusively used for the manufacture of dutiable goods. If the interpretation of the Revenue is accepted, then the Cenvat credit of part of input service even though used in the manufacture of dutiable goods, shall stand disallowed, which is not provided under any of the Rule of Cenvat Credit Rules, 2004. Revenue was unable to distinguish the order/decision relied on by the Ld. Advocate and nor did he file any contrary order/decision in his support - appeal allowed - decided in favor of appellant.
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