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2016 (9) TMI 628 - AT - Central ExciseWhether the provisions of Rule 6(3) of the cenvat Credit Rules are applicable or not and whether the Cenvat Credit shall lapse on 29.04.2008 when e-bikes became exempted from levy of duty or not - manufacture of exempted i.e. e-bikes and dutiable i.e. its parts - import of e-bikes in CKD condition and clearing the same alongwith indigenously procured battery and paying 10% of duty thereon - e-bikes are exempted from levy of duty as per Notification No.25/2008 dt. 29.04.2008 - non-maintenance of separate account of inputs of dutiable as well as exempted final products. Held that:- We do agree with the observations made by the ld. Commissioner (appeals) and hold that as assessee was not maintaining separate account for inputs used in manufacturing of e-bikes and parts thereof, therefore, provisions of Rules 6(3) are squarely applicable to the assessee as the assessee are manufacturing both dutiable and exempted final product and assessee is liable to pay 10% of the value of e-bikes at the time of their clearance and the cenvat credit lying in their cenvat account shall not lapse wholly but the cenvat credit lying in their cenvat account attributable to inputs, work in progress and finished e-bikes shall lapse. As we hold that the provisions of Rule 6(3) are applicable to the facts of the present case, therefore, the provisions of Rules 11(3) of the Cenvat Credit Rules are not applicable. - Decided in favour of appellant
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