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2016 (8) TMI 663 - AT - Central ExciseCenvat credit - wrong availment - inputs used in the manufacture of exempted as well as dutiable finished goods - failed to maintain separate records - Held that:- since there was no proposal for recovery/appropriation of said credit in the Show Cause Notice, therefore, its confirmation is incorrect, in as much as in the Show Cause Notice there has been specific proposal in this regard. Recovery of 8%/10% of the value of the exempted product - Rule 6(3) of CENVAT Credit Rules, 2004 - Held that:- it is found that in the two statements, the Managing Director has categorically stated that they did not avail CENVAT Credit on the input Dextrose anhydrous , the principal raw material used in or in relation to the manufacture of final products, but availed only on input packing material. However, in view of the retrospective amendment to the relevant Cenvat Credit Rules by virtue of Section 70 to 73 of Finance Act, 2010, the Appellant are eligible to reverse proportionate CENVAT Credit for the disputed period attributable to the inputs used in the manufacture of exempted product. Therefore, to ascertain the above facts and to apply the retrospective amendment by allowing the Appellant to reverse the proportionate credit, it is necessary to remand the case to the Adjudicating authority. Accordingly, the Appeal is remanded to the Adjudicating authority to ascertain the proportionate credit attributable to exempted products and allow its reversal in the light of the retrospective amendment. Imposition of penalty on Director - Held that:- No specific reason has been recorded by both the authorities below narrating the Director's role for non-reversal of the CENVAT Credit. Accordingly, the penalty on the Director is not sustainable. - Decided in fsvour of appellsnt
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