2015 (1) TMI 1042

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....edit on furnace oil and oxygen as fuel. Show cause notice dt. 28.7.2005 was issued to the respondent demanding reversal of input credit availed on fuel used in the manufacture and clearance of exempted under Rule 6(2) of CCR. The adjudicating authority in order dt. 21.12.2005 confirmed the demand of Rs. 24,44,678/- equivalent to 8% of value and also imposed equivalent penalty. On appeal by the appellants, the lower appellate authority in the impugned order set aside the order and allowed their appeal. The Revenue preferred the present appeal. 2. Heard both sides. 3. The Ld. AR on behalf of the Revenue reiterates the finding of the adjudication order. He submits that respondents are required to reverse the proportionate credit on the fuel ....

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....ible to avail credit on fuel as per Rule 6 (2) of CCR 2002 and Rule 6 (2) of CCR 2004 prior to the amendment. She relied on the following citations.         (1) CCE Tirunelveli Vs Sudarsanam Spinning Mills 2004 (166) ELT 461 (Tri.-Chennai)        (2) Commissioner Vs Shell Extruders 2009 (233) ELT A63 (Guj.)       (3) Commissioner Vs Sudarsanam Spinning Mills 2014 (300) ELT A13 (Mad.) 5. I have carefully examined both the submissions and perused the records. The short issue to be decided in this appeal is whether respondents are required to reverse the input credit availed on fuel used in the manufacture of exempted products as they manufactured bot....

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.... used as fuel. The present case is only on the credit availed on fuel used in the exempted product. The issue has already been settled by various High Courts and the Tribunal. The Hon'ble High Court of Madras in the case of Commissioner Vs Sudarshan Spinning Mills (supra) upheld the Tribunal's order allowing credit on fuel and rejected the Revenue's appeal. The relevant portion of the said order is reproduced as under:-                 "In this Civil Miscellaneous Appeal, the following Substantial Question of Law is raised for consideration :              "Whether the CESTAT is right in allowin....