https://www.taxtmi.com/caselaws?id=34349 Rule 6(1) of the CENVAT Credit Rules, 2002 was treated as the controlling prohibition against credit on inputs used in exempted goods, and the fuel-input carve-out in Rule 6(2) did not displace that bar. The SC held that CENVAT credit on LSHS used as fuel for generating steam and electricity linked to exempted manufacture was not admissible. In the connected matter, proportionate reversal was required for electricity wheeled out to the Grid and Township, but no penalty was leviable because of conflicting decisions and rule-drafting difficulties; the matter was remitted for quantification of duty. en-us Mon, 17 Aug 2009 00:00:00 +0530 Wed, 12 Nov 2025 11:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34349 Rule 6(1) of the CENVAT Credit Rules, 2002 was treated as the controlling prohibition against credit on inputs used in exempted goods, and the fuel-input carve-out in Rule 6(2) did not displace that bar. The SC held that CENVAT credit on LSHS used as fuel for generating steam and electricity linked to exempted manufacture was not admissible. In the connected matter, proportionate reversal was required for electricity wheeled out to the Grid and Township, but no penalty was leviable because of conflicting decisions and rule-drafting difficulties; the matter was remitted for quantification of duty. Case-Laws Central Excise Mon, 17 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34349