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2024 (2) TMI 252 - AT - Central ExciseCENVAT Credit - common input service used for dutiable and exempted goods - liability to pay 5%/6% on the value of exempted goods (i.e. Sodium Chloride salt) in terms Rule 6(3) of the Cenvat Credit Rules, 2004 - HELD THAT:- This issue has been considered time and again and in various decision, it has been held that even if the appellant undertakes to reverse the proportionate credit attributed to the exempted goods along with interest even at the stage of CESTAT appeal, the demand of 5%/6% under Rule 6(3) of the Cenvat Credit Rules, 2004 shall not sustain. Since the appellant has undertaken to reverse the proportionate credit of common input service attributed to the exempted goods i.e. Sodium Chloride, the demand of 5%/6% under Rule 6(3) of Cenvat credit Rules, 2004 shall not sustain subject to complying their said undertaking. The appellant also made out a strong prima facie case on the ground of time bar as there appears to be no suppression of facts on the part of the appellant. However, if the appellant reverse the proportionate credit along with the payment of interest, the demand of 5%/6% shall not be sustainable. The appeals are allowed by way of remand to the Adjudicating Authority, to decide a fresh.
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