Taking credit and then reversing the same entry is as good as not taking the credit at all

Allahabad Bench of Customs, Excise and Service Tax Appellate Tribunal (“CESTAT”) held that in a case where the assessee is a manufacturer of dutiable goods as well as exempted goods and it is impractical to maintain separate accounts of common inputs used in manufacture of dutiable goods and exempted goods the only practical way of maintaining accounts is by corresponding credit and debit entries, reversing proportionate amount of cenvat credit.




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