2017 (5) TMI 605

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..... Per: D. N. Panda Revenue conceived that the cough syrup manufactured by the appellant was governed by Medicinal & Toilet Preparation Law, 1956 disentitling the respondent to avail CENVAT Credit of the duty paid on the fuel used to produce steam meant for ultimate use in manufacture of final products. 2. Both sides agree that the goods is question is covered under the Medicinal & Toilet Prepara .....

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..... ce of reading, the relevant paragraph of Apex Court judgment is reproduced below: - "10. In our view, sub-rule (1) is plenary. It restates a principle, namely, that CENVAT credit for duty paid on inputs used in the manufacture of exempted final products is not allowable. This principle is in-built in the very structure of the CENVAT scheme. Sub-rule (1), therefore, merely highlights that princip .....

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..... e 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 maintai .....

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