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2019 (1) TMI 175 - AT - Central ExciseCENVAT credit - common input services - Insurance Service - Telephone Service - Audit Charges etc. - these services are used for mining as well as manufacturing process carried at factory - it is alleged that that the Low Grade Bauxite is an exempted product under Notification No. 4/2006-CE - Rules 6(3) of Cenvat Credit Rules, 2004 - demand of 10%/ 5% of the value of exempted goods - Held that:- From the facts it is undisputed that the appellant have been reversing cenvat credit proportionate to the credit on input service used for exempted goods along with interest, therefore, first the credit though availed at the time of receipt of input service but after reversal thereof along with interest the position is if credit was not availed. This issue has been consistently considered in various judgments wherein it was held that if the assesse reversed the cenvat credit in respect of common input service used in the manufacture of dutiable and exempted goods the demand equal to 10%/ 5% will not sustain - reliance paced in the case of M/S. MERCEDES BENZ INDIA (P) LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE-I [2015 (8) TMI 24 - CESTAT MUMBAI]. Thus, once the appellant have opted reversal of the credit in respect of service attributed to the exempted goods and in case of delay, the interest is also paid then the demand of 5% / 10% under Rule 6(3) cannot be made - In the present case since the Ld. Commissioner has demanded 5% / 10% of the value of exempted goods, he has not verified the correctness of actual cenvat credit attributed to exempted goods as reversed by the assesse. Therefore, only for the purpose of verification of such quantification of reversal, the matter in case of assessee’s appeals is remanded to the original authority - issue of penalty is also to be considered - appeal allowed by way of remand.
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