2020 (7) TMI 486

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ecision of this Tribunal in the case of COMMISSIONER OF CENTRAL EXCISE ST, RAJKOT VERSUS M/S. RELIANCE INDUSTRIES LIMITED [ 2019 (3) TMI 784 - CESTAT AHMEDABAD] where it was held that From the reading of Rule 6(1), it is clear that only in respect of input or input service used in exempted goods are not allowed. That means input or input service used in taxable service/dutiable goods. Appeal allowed - decided in favor of appellant.
MR. S.K. MOHANTY, MEMBER (JUDICIAL) Ms. Anjali Hirawat, Advocate for the Appellant Shri Sanjay Hasija, Authorized Representative for the Respondent ORDER Briefly stated, the facts of the case are that the appellant is engaged in the manufacture of dutiable final products viz., Methanol, Iso-propyl Alcohol, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... posed on the appellant. On appeal, the learned Commissioner (Appeals) vide the impugned order dated 19.09.2017 has upheld the adjudication order and rejected the appeal filed by the appellant. Feeling aggrieved with the impugned order, the appellant has filed this appeal before the Tribunal. 2. The learned Advocate appearing for the appellant submitted that the factor "P" used in the formula prescribed under Rule 6 (3A) (c) (iii) ibid denotes 'total common Cenvat credit' and not 'total Cenvat credit', as contended by the Department. Thus, she submitted that the appellant had correctly applied the formula for reversal of ineligible credit. In this context, the learned Advocate has relied upon the decisions of this Trib .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed in dutiable final products and taxable service. However, nowhere in Rule 6 it is provided that the input or input service used in dutiable goods shall not be allowed. The Revenue is only interpreting the term "total Cenvat Credit" provided under the formula. If the whole Rule 6(1) (2) (3) is read harmoniously and conjointly, it is clear that "Total Cenvat Credit" for the purpose of formula under Rule 6(3) is only total Cenvat credit of common input service and will not include the Cenvat credit on input/input service exclusively used for the manufacture of dutiable goods. If the interpretation of the Revenue is accepted, then the Cenvat credit of part of input service even though used in the manufacture of dutiable goods, shall stand dis .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X