Generation of LPG, a by-product, cannot hinder the fact that entire quantity of input and input services used for manufacture of dutiable product

Principal Commissioner Vs Reliance Industries Ltd. (Gujarat High Court)

Generation of LPG, a by-product, cannot hinder the fact that entire quantity of input and input services used for manufacture of dutiable product

Facts- The respondent is engaged in the manufacture of excisable goods like Motor Spirit, High Speed Diesel, LPG etc. It is the case of the appellant that the respondent has been availing credit of duty paid on the input and capital goods and input service in terms of the provisions of the CENVAT Credit Rules, 2004. The refund claim was made in respect of the CENVAT Credit Reversed / Paid under Rule 6(3) of the CENVAT Credit Rules, 2004 for the period between April, 2015 and March, 2016 on removal of the LPG under the Domestic Subsidy Scheme as under:

i) The amount reversed / paid on inputs attributable to LPG in terms of Rule 6(3A)(c)(i) Rs.2,20,32,262/-.
Total: Rs.8,31,32,211/-

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