Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2014 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 448 - HC - Central ExciseManufacturing of exempted as well as dutiable goods - Cenvat facility - Rule 6 - the appellant did not maintain separate accounts as required under Rule 6 (2) of the Cenvat Credit Rules, 2004 in respect of common inputs service used in the manufacture of exempted products as well as dutiable products. - Appellant made reliance on the case of Shree Rama Multi tech Ltd., Vs. UOI, reported in [2011 (2) TMI 575 - GUJARAT HIGH COURT] wherein proportionate credit was allowed to be reversed instead of 10% of the price of exempted goods - Held that:- Appellant was manufacturing dutiable as well as exempted goods and while availing of Cenvat credit, the Appellant had not maintained a separate account as required by Rule 6(2) and suppressed this fact. On this ground, the extended period of limitation was invoked and the Appellant was held liable to pay an amount equal to 10% of the total price of the exempted final product as required by Rule 6(3)(b). Material before the Tribunal was sufficient to indicate that admittedly the Appellant produced dutiable and exempted products. Though it failed to maintain a separate account in respect of the input service utilised in or in relation to the dutiable and exempted final products as required by Rule 6(2), this fact was suppressed from the Department with the intent to evade duty - Appellant had failed to avail of the facility which was available under the amended provisions of the Finance Act, 2010. The Tribunal while deleting the penalty has made a passing observation to the effect that there was no intention to evade payment of duty. This, however, does not in any way nullify or negate the principal finding of the adjudicating authority and the first Appellate Authority which has been confirmed by the Tribunal - Decided against assessee.
|