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2018 (7) TMI 764 - AT - Central ExciseCENVAT Credit - common inputs used in manufacture of dutiable as well as exempt goods - exempted goods i.e. Vanaspati/Refined Vegetable oil - no separate inventory and account of inputs used in the manufacture of dutiable and exempted final products had been maintained - Rule 57CC of the Central Excise Rules, 1944 - extended period of limitation - Held that:- Appellant have reversed the Modvat credit on proportionate basis in respect of the said inputs used in the manufacture of exempted final product. It is not disputed that the appellant have also paid the interest on the reversed credit @24% per annum. At the relevant time, the entitlement of the appellants to reverse the credit to the extent of common inputs used in the manufacture of exempted final products was in doubt. However, subsequently Rule 57CCC was inserted in the Central Excise Rules, 1944 through Finance Act, 2010 for reversal of actual credit by the manufacturer availing the credit of specified duty in respect of inputs used for manufacture of final product, which are not chargeable to duty or chargeable to nil rate of duty by payment of amount equivalent to amount of credit attributable to inputs used in the manufacture of such final products - the said amendment was retrospective in nature and covers the impugned period in this appeal. Since the appellant have reversed Cenvat credit attributable to the common inputs used for manufacture of exempted final products and paid interest @24% per annum, the appellant has made met the requirement of scheme of retrospective amendment of Section 69(2) of the Finance Act, 2010 - the demand of 8% of the value of exempted goods is not sustainable and is accordingly set aside. Appeal allowed - decided in favor of appellant.
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