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TMI Blog2009 (7) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of exempted and dutiable goods. Further, Cenvat credit on Service Tax of GTA was denied on removal of inputs as such. The Commissioner (Appeals) set aside denial of credit. Hence, revenue filed this appeal. 2. Ld. DR on behalf of the revenue reiterates the grounds of appeal. He submits that rule 6(1) of Central Credit Rules, 2004 provides that, "Cenvat credit shall not be allowed on such quantity of input or input services, which is used in the manufacture of exempted goods or exempted services". The Commissioner (Appeals) has erred in allowing credit of Service Tax on GTA on inputs used in the manufacturing of dutiable and exempted goods. He further submits that rule 3(5) of Cenvat Credit Rules, 2004 provides that, "when inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) are reproduced below:— "8. The second question framed by the lower authority, and which has been answered in the negative against the appellants, is whether or not Cenvat credit on services of GTA is admissible of the transportation of procurement of raw materials used in the manufacture of the exempted goods. In this regard, I observe that sub-rule (5) of rule 6 in clear terms provides that credit can only be denied if the services are used exclusively in or in relation to the manufacture of the exempted goods. In other words, if the services are rendered both for exempted and dutiable goods manufactured, as the case here, then the credit taken cannot be denied. Since the service availed is not used exclusively for exempted goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit availed inputs or capital goods are removed from the factory of the assessee, sub-rule (5) of rule 3 of the Cenvat Credit Rules, 2004 provides for recovery of equal amount of credit. There is no such provision to reverse credit of service tax availed in relation to such inputs or capital goods when removed from the factory. Moreover, rule 14 of the Cenvat Credit Rules, 2004 provides for recovery of Cenvat credit availed or utilised wrongly. In the instant case, the appellants had taken the credit correctly in terms of the statutory provisions. No provision exists in the Finance Act, 1994 which would render utilisation of such credit erroneous for the reason that some of the inputs, transport of which yielded GTA service tax, credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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