Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 430 - AT - Central ExciseAvailment of CENVAT Credit - Non maintenance of separate accounts - Held that:- Appellant had availed Cenvat credit of service tax paid on common input services. We find from the records that the appellant had manufactured and cleared newsprint paper and Kraft paper. Appellant claimed exemption from payment of duty in respect of newsprint paper and discharged appropriate duty liability on the Kraft paper - worksheet attached to the show cause notice that 87% of the final products manufactured by the appellant are cleared availing exemption from payment of duty. It is the case of the appellant that they had initially reversed the Cenvat credit proportionate to the exempted goods cleared but subsequently reversed the entire Cenvat credit availed on common input services. In support of such a claim, our attention was drawn to the relevant documents. On perusal of such documents, we find it so. - As per the provisions of the Cenvat credit rules, more specifically Rule 6, we find that if a manufacturer proportionately reverses the Cenvat credit attributable to the clearances of exempted goods, it is considered as compliance of the provisions and need not be burdened with the demand of an amount equivalent to 5% or 10% of the value of exempted goods. In the case in hand, as the appellant has already reversed the entire Cenvat credit of service tax paid on the common input services, we find that further demanding any amount from him is not in consonance with the law. - Impugned order is set aside - Decided in favour of assessee.
|