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2009 (4) TMI 508 - CESTAT, BANGALORE
Manufacture of dutiable and exempted products - assessee did not maintain separate accounts for receipt, inventory and consumption of inputs as per Cenvat Credit Rules - SCN was issued for demand of an amount equal to 8%/10% of the total price excluding sale tax and other tax in’ respect of exempted goods under Rule 6(3)(b) of the Cenvat Credit Rules, 2002/2004 - appellants had not taken entire credit on the duty paid on the inputs used in dutiable and exempted products. It is on record that they had availed credit on pro-rata basis - credit taken only in respect of inputs used in dutiable products - Held that:- demand of 8%/10% of the value of the exempted products is not at all justified, no justification for invocation of longer period and imposition of mandatory penalty