2022 (11) TMI 40

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....ve for the Respondent ORDER The brief facts of the case are that the appellant are engaged in the manufacture of dutiable as well as exempted products however they are availing the cenvat credit in respect of common inputs used in both category of the final products, therefore a show cause notice dated 20.10.2006 was issued wherein a demand @ 8% of the value of exempted goods was proposed in ter....

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....sessee and it is the assessee who has to choose the option. The departmental authority has no locus standi to dictate that which option has to be opted by the appellant. For this reason itself, the show cause notice is not sustainable. In this regard, he placed reliance on the following judgements: * 2019 (10) TMI 27- TIARA ADVETISING V UOI * 2021 (11) TMI 426 - NAVA BHARAT VENTURES LTD VS COM....

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....e manufacture of exempted final product is not admissible. I also find that the entire objective of allowing the cenvat credit is to avoid the cascading effect of duty on the final product. When the final product is not dutiable, there is no reason to allow the cenvat credit on the inputs used in such final products. Therefore, in my considered view, the adjudication order is absolutely proper and....