Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Rule 6 CENVAT Credit Rules | Proportionate Reversal of Input Credit on Exempted Electricity Sales Does Not Constitute Non-Availment : CESTAT
CESTAT ruled that reversing CENVAT credit proportionately on inputs used for exempted electricity sales does not amount to non-availment under Rule 6 of the CENVAT Credit Rules. The Tribunal set aside demands totaling ₹7.13 crore, clarifying that separate record-keeping is not mandatory if credit reversal is already effected, offering relief to manufacturers with captive power plants.