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TMI Blog2018 (5) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 4-5-2018 - S. S. Garg, Judicial Member Mr. Raghavendra, Advocate For the Appellant Mrs. Kavitha Podwal, AR For the Respondent ORDER Per : S. S. Garg The present appeal is directed against the impugned order dated 7.12.2015 passed by the Commissioner (A) whereby the Commissioner (A) has confirmed the demand and set aside the penalty. 2. Briefly the facts of the present case are that the appellants are manufacturers of ayurvedic medicines. They manufacture both dutiable and exempted ayurvedic medicines and availed CENVAT credit of excise duty paid on inputs under Rule 6(1) of the CENVAT Credit Rules, 2001/2002 and 2004. In the case of fuel used in generation of steam, they were taking credit for the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Commissioner vs. Gujarat Narmada Fertilizer Company Ltd. reported in 2009 (240) ELT 661 and subsequently, followed by the Hon ble Supreme Court in the case of CCE, Vodadara vs. Gujarat Narmada Fertilizer Company Ltd. reported in 2012 (286) ELT 481 and also in the case of CCE vs. Dalmia Magnesite Corporation reported in 2016 (344) ELT 100 (Del.) and subsequently, it was followed by High Court of Gujarat in the case of CCE vs. Deeyakar Aluminium Pvt. Ltd. as reported in 2016 (344) ELT 76 (Guj.). 6. On the other hand, the learned counsel for the appellant also admitted that the Hon ble Supreme Court has settled this issue in favour of the Revenue. 7. After considering the submissions of both sides, I find that the issue is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... still fall in sub-rule (1). As stated above, Sub-rule (1) is plenary, hence, it cannot be said that because sub-rule (2) is inapplicable to fuel-input(s), CENVAT credit is automatically available to such inputs even if they are used in the manufacture of exempted goods. The cumulative reading of sub-rules (1) and (2) makes it abundantly clear that the circumstances specified in subrule (2), which inter alia requires separate 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 fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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