TMI Blog2006 (12) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... S) used by the assessees herein who are engaged in the manufacturer of fertilizers, to input duty credit. According to the Revenue, Cenvat credit is not admissible, in terms of Rule 6(1) of the Cenvat Credit Rules, 2002, which states that Cenvat credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods, except in the circumstances mentioned in sub-rule (2) which provides for the procedure to be followed of maintenance of separate accounts by a manufacturer of dutiable and exempted goods, who avails of Cenvat credit in respect of any inputs, except inputs intended to be used as fuel and restricts the eligibility to credit only to that quantity of inputs intended for use in the manufacture of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken on that quantity of LSHS utilised in producing electricity used in the township as well as quantity supplied to Gujarat Electricity Board (LSHS was used by the assessees who are manufacturers of fertilizers, chemicals and PCB as feedstock for the manufacture of fertilizers as also for generation of steam and electricity which steam was being used both for the manufacture of fertilizers and industrial products as well as for generation of electricity in their captive power plant and a portion of the electricity so generated was supplied to the township and Gujarat Electricity Board outside the factory), was proposed under Rule 57AH of the Central Excise Rules, 1944 as well as Rule 8 of the Cenvat Credit Rules, 2001. The Tribunal held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (d) defines "input". Credit is available under Rule 57AB. The conditions for allowing credit are prescribed by Rule 57AC. Rule 57AD provides for obligation of manufacturer of dutiable and exempted goods. It is stated that Cenvat credit shall not be allowed on quantity of inputs which are used in manufacture of exempted goods, except in circumstances mentioned in sub-rule (2). Under sub-rule (2) of Rule 57AD it is provided that where a manufacturer avails of Cenvat credit in respect of any inputs which are used for the manufacture of final products which are chargeable to duty as well as exempted goods, then he has to maintain separate accounts. For the present it is not necessary to deal with the remaining part of sub-rule (2). Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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