Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (12) TMI 470 - CESTAT, BANGALORECenvat - The respondents have been availing Cenvat credit on the inputs used in the manufacture of excisable goods. The department noticed that the respondents had taken Cenvat credit on an input which was used in the manufacture of final product which was totally exempted by Notification No. 6/2002-C.E., dated 1-3-2002, which is irregular though the respondents had reversed an amount equal to the 8% of the value of such exempted goods cleared. It was also noticed by the department that the respondent had cleared spent solvents and chemicals under commercial invoice without payment of duty. On these two allegations, show cause notice was issued to the respondent demanding duty and proposing to impose penalties and also seeking to demand interest. Held that - spent solvent and chemicals product arise during course of manufacture of bulk drug, not liable to duty. Further held that - revenue failed to ask why assessee had availed credit, when ER-1 return indicates reversal of 8% of value of exempted final products. Finding of Commissioner (Appeals) on limitation, correct. Demand held time barred.
|