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2019 (2) TMI 1291 - AT - Central ExciseCENVAT Credit - input and input services which has been used for manufacture of dutiable as well as the exempted goods - non-maintenance of separate records - Rule 6(3) of Central Excise Rules, 2004 - demand of 10% of the valuable exempted goods - time limitation - Held that:- There is no dispute that the appellant is not entitled to avail Cenvat credit on common input/input services to be used in manufacture of exempted as well as dutiable goods in terms of Rule 6(3) of Central Excise Rule, 2004. Time Limitation - Held that:- Initially, in 2007 the appellant was manufacturing only dutiable goods but in August 2007 the appellant started manufacturing exempted goods also apart from dutiable goods and was availing Cenvat credit on common inputs and input services for manufacturing both dutiable exempted final goods and not reversing the proportionate Cenvat credit attributable to exempted goods or paying 10% of the valuable exempted goods. These facts were also available during the course of audit conducted during the period 16th/17th April 2008 and no objection was raised by the Revenue - the show cause notice is rightly issued to the appellant by invoking the extended period of limitation. The appellant is required either to reverse the proportionate Cenvat credit attributable to exempted final product or to pay 10% of the value of exempted final product for the period 17.05.2009 till date 31.03.2011 along with interest - penalty not invocable - appeal allowed in part.
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