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2022 (11) TMI 923 - CESTAT MUMBAIRefund claim - inadvertent reversal of CENVAT Credit under rule 6(3A) of CENVAT Credit Rules, 2004 - liquefied petroleum gas (LPG) - exempt goods or not - April 2010 and March 2011 - HELD THAT:- The appellant is a manufacturer of excisable goods and had availed credit under CENVAT Credit Rules, 2004 on eligible ‘inputs’ used in the manufacture of excisable goods but, under the impression that ‘liquefied petroleum gas (LPG)’, exempted by notification no. 4/2006-Central Excise Act, 1944 dated 1st March 2006 when cleared for use under the ‘public distribution system (PDS)’ were ‘exempted goods’ within the meaning of rule 2(d) of CENVAT Credit Rules, 2004, reversed such proportion and also excluded it for the computation prescribed in rule 6(3A) of CENVAT Credit Rules, 2004. The case has been decided in appellant own case in THE PRINCIPAL COMMISSIONER, CENTRAL GST AND CENTRAL EXCISE VERSUS M/S. RELIANCE INDUSTRIES LTD. [2022 (5) TMI 650 - GUJARAT HIGH COURT] where the Hon’ble High Court of Gujarat had considered the very same decisions for the approval accorded to that of the Tribunal and held that This Court, held that since the assessee could not have manufactured gelatin (dutiable final product) using a lesser quantity of hydrochloric acid, Rules 6(1) and 6(2) of the CCR would not come into play. In these circumstances, the principle stands established that rule 6 of CENVAT Credit Rules, 2004 is inoperable ab initio in such clearances - demand set aside - appeal allowed - decided in favor of appellant.
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