CENVAT credit foregone is compliance of Rule 6(3) of CENVAT credit rules

Brief Facts

The appellant is manufacturer of pharmaceuticals products. The period of dispute is from May, 2007 to March 2008. During this period, the appellant were using various common input services in or in relation to the manufacture of dutiable final product as well as exempted final products.

However, they were not taking the cenvat credit in respect of these input services in proportion to the turnover of the exempted final product. During the period of dispute

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