TMI Blog2019 (5) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... s which are exported out of India - HELD THAT:- The Hon ble High Court of Bombay has, in the case of REPRO INDIA LTD. VERSUS UNION OF INDIA [ 2007 (12) TMI 209 - BOMBAY HIGH COURT ] decided that such credit is available in Rule 6(6)(v) of CCR 2004. Goods cleared under Chapter X procedure - HELD THAT:- This Bench has, relying upon the judgment of Hon ble High Court of Rajasthan in the case of Hindustan Zinc Limited vs. Union of India [ 2007 (1) TMI 94 - HIGH COURT RAJASTHAN ] upheld by Hon ble Apex Court at [ 2014 (5) TMI 253 - SUPREME COURT ] held that the goods cleared under Chapter X procedure are not exempted goods and there is no need to reverse credit under Rule 6(3)(i) of CCR 2004. Credit allowed - appeal allowed - decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and exempted goods in their factory. Whenever inputs which can be used both for dutiable as well as exempted products are received, they do not take credit immediately but only record them in their inventory. Whenever some portion of such inputs are issued for manufacture of either dutiable goods or manufacture of goods which are exempted for export purposes, they avail credit on the basis of actual consumption of inputs. For example, if 1,000 Kg of an input is received and only 200 Kg is used for manufacture of dutiable goods or exempted goods for export, they take proportionate credit only to the extent of that 200 Kg. The modus-operandi followed by the appellant was as follows:- (i) When inputs are received at the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been used for manufacture of dutiable goods or exempted goods which are exported. In their own case, this Bench as reported in [2018(8)TMI 1440 CESTAT-HYDERABAD] held that credit can be availed in such a manner. The present appeal is only for a subsequent period. Where credit is availed only based on the actual use, the question of reversal under Rule 6 does not arise as has been held in the case of IPCA laboratories Ltd. vs. CCE, Indore [2015-TIOL-1097-CESTAT-DEL]. As far as the CENVAT Credit on inputs used in the manufacture of exempted goods which are exported is concerned, he would submit that Hon ble High Court of Bombay in the case of Repro India Limited vs. Union of India [2009(235)E.L.T. 614 (Bom.)] has held that assessee can re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Whether the assessee was correct in taking CENVAT Credit on exempted goods which were exported; (iii) Whether the assessee was correct in taking CENVAT Credit in respect of dutiable goods which were cleared under Chapter X procedure. 9. We find that all these three issues were settled earlier. As far as the question of taking proportionate amount of credit based on the usage as opposed to taking the credit on the entire input invoices are concerned, in the assessee s own case as reported in 2018(3)TMI 837-CESTAT-Hyderabad, this Bench has decided that the assessee can take credit in proportionate to the quantity of inputs used for manufacture of dutiable goods. As far as the question of availab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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