https://www.taxtmi.com/caselaws?id=371728 Rule 6 of the Cenvat Credit Rules, 2004 applies where a manufacturer consciously produces exempted final products using common inputs; it does not extend to unavoidable waste or by-products arising in the course of manufacture. Where the manufacturer had intimated the department, opted under Rule 6(3A), maintained the prescribed monthly provisional payments, and the disputed item was electricity or other material emerging during manufacture, the credit reversal demand was unsustainable. The analysis treats such by-products or inevitable waste differently from exempted goods, so the demand, interest and consequential penalty did not survive. en-us Fri, 07 Dec 2018 00:00:00 +0530 Mon, 10 Dec 2018 09:38:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=371728 Rule 6 of the Cenvat Credit Rules, 2004 applies where a manufacturer consciously produces exempted final products using common inputs; it does not extend to unavoidable waste or by-products arising in the course of manufacture. Where the manufacturer had intimated the department, opted under Rule 6(3A), maintained the prescribed monthly provisional payments, and the disputed item was electricity or other material emerging during manufacture, the credit reversal demand was unsustainable. The analysis treats such by-products or inevitable waste differently from exempted goods, so the demand, interest and consequential penalty did not survive. Case-Laws Central Excise Fri, 07 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=371728