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2023 (12) TMI 39 - CESTAT ALLAHABADReversal of proportionate CENVAT Credit - manufacture of both dutiable goodsas well as exempted goods - non-maintenance of separate records of inputs - HELD THAT:- It is not relevant as to how the separate records are maintained rather it is important that the records are maintained in such a way that no credit on constituent inputs is taken which is used in manufacture of exempted goods either by sole use are by common use. There is no such allegation in the show cause notice against the respondent for taking credit on any input which is solely used in exempted goods or used as common input. The notice alleged that though the party maintains separate records but not as required under Rule 6 (2) of the CCR, 2004. This view is not supported by any evidence and there is no prescribed manner in Rule 6 (2) for maintaining separate records.It is also found that the only requirement is that the credit should not be taken on inputs used in exempted goods. If the inventory of exempted goods are separately maintained and no credit is availed on the inputs used therein, this will serve the purpose. The demand of 10% amount under sub-rule 3 of Rule 6 of the CCR, 2004 on the export clearances as detailed in Annexure-A to the notice is contrary to the provisions of sub-rule 6 of Rule 6 of the Cenvat Credit Rules, 2004 as the export clearances are one of the clearances among others to which the provisions under sub- rules (1), (2), (3) & (4) of Rule 6 shall not be applicable. The demand of an amount on export clearances is not sustainable in the light of the provisions of sub rule 6 of Rule 6 of the CCR 2004 - There are no infirmity in the impugned order and accordingly, the same is sustained - appeal dismissed.
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