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TaxTMI 
2018 (12) TMI 497
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.... leviable on their finished excisable goods. Department during the scrutiny of record has observed that during the period of April 2014 to March, 2015 the appellant have availed the Cenvat credit of duty paid on the input and input services like service tax paid on GTA Coal, cargo handling service on coal, security service, repair and maintenance service and manpower recruitment services etc. and also on input such as coal etc. used for generation of electricity on which for the time being no excise duty was chargeable. It was also observed that the electricity so generated was sold outside the factory gate of the appellant to the customers for a monetary consideration besides being used captively in the manufacture of excisable goods. It w....
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....goods, capital goods and the inputs as given under Central Excise Act and CCR, 2004 respectively. She has also impressed upon that since they were not maintaining the separate accounts for receipt, consumption and inventory of inputs, they were entitled for exercising the options as mentioned in Rule 6 (3) of CCR, 2004. They have opted Rule 3A (b) (iii) of CCR, 2004 and have accordingly, discharged their liability correctly. The findings under challenge are alleged as erroneous and are prayed to be set aside. Ld. Counsel has relied upon CCE, Raipur vs. Aarti Sponge & Power Ltd. reported in 2017 (350) ELT 268 (Tri.-Delhi) to impress upon that when common inputs are used in manufacture of dutiable as well as exempted products, any by-product/....
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....ing exempted services.. (3) for the provision of exempted services (4) for the provision of output services excluding exempted services in accordance of Rule 6 (2) (a) of CCR, 2004. Hence, the appellant was entitled to exercise option as mentioned in Rule 6 (3) of CCR. One of the option thereof is 6 (3) (ii) that is to pay an amount as determined under Sub-rule (3A). Sub-rule (3A) reads as follows:- (3A) For determination and payment of amount payable under clause (ii) of sub-rule (3), the manufacturer of goods or the provider of output service shall follow the following procedure and conditions, namely:- (a) (a) while exercising this option, the manufacturer of goods or the provider of output service shall intimate in writing to th....
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....tes total value of exempted services provided plus the total value of exempted goods manufactured and removed during the preceding financial year, F denotes total value of taxable and exempted services provided, and total value of dutiable and exempted goods manufactured and removed, during the preceding financial year, and G denotes total CENVAT credit taken on input services during the month; 6. From the record of the appeal, it is apparent that sub-clause (a) of sub-rule (3A) has been complied with by the appellant and that the appellant had been making the payment in accordance of sub-rule 3A (b) (iii). 7. The Department has alleged the credit qua the sale of electricity generated by the appellant to the other customers against monet....
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....el.) has held as follows:- "5. I have considered the submission made from both sides and perused the record. In this case, the iron ore fine emerges as an inevitable waste while screening and sieving the iron ore for removal of smaller particles prior to manufacture of sponge iron. The provisions of Rule 6(2) and Rule 6(3) of Cenvat Credit Rules, 2004 are applicable when a manufacturer consciously manufactures two products - an excisable and the other fully exempted product using common inputs and/or input services. In such circumstances, in terms of the provisions of Rule 6(2) the manufacturer is required either to maintain separate account and inventory for the input and input services which are used in the manufacture of dutiable and ex....