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TMI Blog2025 (3) TMI 954X X X X Extracts X X X X X X X X Extracts X X X X ..... oth dutiable as well as exempted goods, is the subject matter of the present dispute. This is the second round of litigation before the Tribunal. In the earlier round of litigation, the impugned order passed by the adjudicating authority was appealed against before the Tribunal, which was disposed of vide order dated 18.07.2006, in allowing the appeals in favour of the appellants. In the said order, it was held that the input 'fuel' should not fall within the scope and ambit of Rule 57CC of the erstwhile Central Excise Rules, 1944 and Rule 6 of the CENVAT Credit Rules, 2001, 2002 & 2004, for the purpose of reversal of CENVAT Credit. The said order of the Tribunal was assailed against by Revenue before the Hon'ble Bombay High Court and vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally, the dispute was resolved by the Hon'ble Supreme Court in the case of Gujarat Narmada Valley Fertilizers Co. Ltd. (supra). The relevant paragraphs recorded in the said judgment are extracted herein below: - "8. This Court in (2009) 9 SCC 101 = 2009 (240) E.L.T. 661 (S.C.) [CCE v. Gujarat Narmada Fertilizers Co. Ltd.], (supra), after setting out the Central Excise MODVAT Rules as they stood in 2000, together with the Cenvat Credit Rules, then went on to hold : "15. As can be seen from the submissions, the contention of the assessee is that exclusion of fuel inputs from the purview of sub-rule (2) of Rule 6 would mean that such inputs are also automatically excluded from sub-rule (1) whereas according to the Department sub-rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 maintain separate accounts or in its absence pay 8%/l0% of the total price of the exempted final products. 18. 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. In our view, the above aspect has not been properly appreciated by the Gujarat High Court in Gujarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. On careful reading of the said relied upon judgment, we find that the Hon'ble Supreme Court have distinguished the contents in both the Rules i.e. sub-rule (1) and sub-rule (2) of Rule 6 ibid. Since sub-rule (2) of Rule 6 ibid has not dealt with the input i.e., 'fuel', in order to maintain separate records by the assessee, it was held that as per the provisions of sub-rule (1) of Rule 6 ibid, the assessee is required to reverse the CENVAT Credit availed on fuel used in or in relation to manufacture of the exempted goods. It is an admitted fact on record that the appellants had reversed the CENVAT Credit on pro-rata basis in respect of the Furnace Oil used for manufacture of the exempted final product. The said fact is evident from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture of the exempted goods and the said particulars were also furnished by them before the jurisdictional Central Excise authorities under the cover of their letter dated 05.05.2000. The demand, if any, in our considered view, should be calculated with respect to the normal period prescribed under Section 11A ibid. Since the appellants had averred that in the letter dated 24.08.2012, they had intimated the jurisdictional Central Excise authorities regarding reversal of MODVAT/ CENVAT Credit availed by them, we are of the view that matter should be remanded to the original authority for the limited purpose of verification of records to ascertain the accuracy of the submissions made by the appellants regarding reversal of MODVAT/CENVAT Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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