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2018 (11) TMI 908 - AT - Central ExciseCENVAT Credit - manufacture of dutiable as well as exempt goods - non-maintenance of separate records - Rule 6 of CCR - Held that:- Rule 6 covered the exempted goods also and no specific provisions is there for the goods where the provisions of goods at concessional rate of duty for manufacturer excisable goods Rule 2001 are also required to be followed - The law is very clear that if any input, input services or capital goods find place in manufacture of goods which are exempted from payment of central excise duty in that case, the manufacture is legally required to reverse back the 6% of the value of clearances from the accumulated Cenvat credit - The provisions are very clear that manufacturer is also free to maintain separate account of inputs and the credits thereon for both dutiable as well as exempted goods and in that case the requirement of 6% of the value of clearances is need not to be followed. In this case, since the appellants have not maintain separate account of Cenvat credit availed on exempted as well as dutiable final products, hence, legally they are required to reverse back the 6% of value of clearances of the exempted goods from the Cenvat credit - the appellant are legally required to reverse back the input credit availed on the inputs going into the exempted final products. Penalty - Held that:- since before the issue of the show cause notice itself the appellants have reversed back the proportionate Cenvat credits and we do not find any malafide intention on the part of the appellant for intentional attempt to evade or mis-use Cenvat credit - penalty under Rule 15 of Cenvat Credit Rules readwith Section 11AC of Central Excise Act, 1944 not warranted. Appeal allowed in part.
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