Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 723 - CESTAT NEW DELHIReversal of cenvat credit - input services commonly used in the manufacture of dutiable as well as exempted products - Held that: - Rule 6(3) of the Rules requires that if separate accounts are not maintained for the inputs / input services used for manufacture of dutiable as well as exempted products, the manufacture should reverse an amount at the rate of 10% of the value of the exempted products. However, I find that the amendment in Rule 6 vide N/N.23/2004-CE (NT), dated 10.09.2004 has given an option for proportionate reversal, instead of reversal of 10% of the value of the exempted products. The Notification has also been given retrospective effect for the period from 10.09.2004 to 31.03.2008. I find that the entire demand covered in the present case falls within the time frame covered in the retrospective amendment. It is also on record that the entire input service credit stands reversed along with interest payable thereon. Under the circumstances, the demand does not survive - appeal allowed - decided in favor of appellant-assessee.
|