TMI Blog2010 (7) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... all inputs including fuel-inputs, only exception being non-fuel-inputs, for which one has to maintain separate accounts or in its absence pay 8% /10% of the total price of the exempted final products. Therefore, Sub-rule (1) shall apply in respect of goods used as "fuel" and on such application, the credit will not be permissible on such quantity of fuel which is used in the manufacture of exempted goods – decision of SC in Commissioner of Central Excise Vs. Gujarat Narmada Fertilizers Co. Ltd. [2009 -TMI - 34349 - SUPREME COURT] followed – decided in favor of revenue - 12 of 2009 & 17786 of 2009 - - - Dated:- 15-7-2010 - Represented :- Through: Mr. Mukesh Anand, Advocate Through: Mr. M.P. Devnath, Advocate CORAM:- HON'B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assistant Commissioner, Salem Division vide Order-in-Original No.10/99 disallowed the credit. The company preferred an Appeal before the Commissioner (Appeals) Trichy which was allowed vide Order No.12/2003 dated 28.01.2003. 2. In his orders dated 28.01.2003, the Commissioner (Appeals) formulated the issue as to whether the respondent herein was required to reverse the modvat credit/pay duty proportionate to the furnace oil used in the manufacture the wire rods cleared without payment of duty. This issue was decided in favour of the respondent following the Tribunal‟s judgment in the case of M/s. Indore Steel Iron Mills Ltd. decided on 04.02.2002. Appeal preferred by the Department against the said order has been dismissed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cannot be said that because Sub-rule (2) is inapplicable to fuel-input(s), CENVAT credit is automatically available to such inputs even if they are used in the manufacture of exempted goods. The cumulative reading of sub-rules (1) and (2) makes it abundantly clear that the circumstances specified in Sub-rule (2), which inter alia requires separate accounting of inputs, are not applicable to the fuel- input(s). However, the said Sub-rule (2) nowhere says that the legal effect of Sub-rule (1) will stand terminated in respect of fuel-inputs which do not fall in Sub-rule (2). In other words, the legal effect of Sub-rule (1) has to be applied to all inputs including fuel-inputs, only exception being non-fuel-inputs, for which one has to mainta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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