Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 579 - AT - Central ExciseCENVAT Credit - input used in manufacture of dutiable as well as exempt goods - appellant have reversed the proportionate Cenvat credit attributed to the exempted goods along with interest - whether the appellant is liable to pay 10% as per Rule 6(3)(b) of Cenvat Credit Rules, 2004 or equal Cenvat Credit attributed to the exempted goods? HELD THAT:- The period in this case is covered by the amendment in Finance Act 2010 whereby rule 6 was retrospectively amended. Accordingly, the appellant as per the said amendment was required to reverse only proportionate credit attributed to the exempted goods which they have admittedly reversed. This issue has been considered by this Tribunal in the case of M/S GUJARAT INFRAPIPES PVT. LTD. VERSUS COMMISSIONERS OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX-VADODARA-II [2016 (1) TMI 268 - CESTAT AHMEDABAD] where it was held that Once, the appellant have foregone the proportionate cenvat credit in respect of input services used in or in relation of the manufacture of exempted final product, they have to be treated as complied with the provisions of sub Rule (3) of Rule 6 and hence, there cannot be any demand of amount under Rule 6(3) (b). Thus the appellant is not required to pay 10% of the value of exempted goods and the payment made equal to the cenvat credit is the sufficient compliance of amended Rule 6 retrospectively - appeal dismissed - decided against Revenue.
|