9911796707
TMI Blog2010 (5) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... of dutiable and exempted final products and that the assessees had not maintained separate accounts as contemplated under Rule 6(2) of the CENVAT Credit Rules, 2004, and penalty of equal amount imposed under Rule 15 and proceed to hear and decide the appeal itself at this stage, with the consent of both sides. 2. The issue involved in this appeal is whether a demand of 10% of the sale value of exempted goods can be made on the ground that Furnace Oil was used as a fuel both for the manufacture of non-dutiable intermediate goods, namely, "Dead Burnt Magnesite" which was partly sold in the market and partly consumed in the manufacture of dutiable final products, namely, 'refractory bricks' and 'ramming mass'. The period involved in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and input services lying in balance as on the date of exercising the option under this condition; (b) the manufacturer of goods or the provider of output service shall, determine and pay, provisionally, for every month,- (i) the amount equivalent to CENVAT credit attributable to inputs used in or in relation to manufacture of exempted goods, denoted as A; (ii) the amount of CENVAT credit attributable to inputs used for provision of exempted services (provisional)-(B/C) multiplied by D, where B denotes the total value of exempted services provided during the preceding financial year, C denotes the total value of dutiable goods manufactured and removed plus the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services provided during the financial year, K denotes the total value of dutiable goods manufactured and removed plus the total value of taxable services provided plus the total value of exempted services provided, during the financial year and L denotes total CENVAT credit taken on inputs during the financial year minus H; (iii) the amount attributable to input services used in or in relation to manufacture of exempted goods or provision of exempted services = (M/N) multiplied by P, where M denotes total value of exempted services provided plus the total value of exempted goods manufactured and removed during the financial year, N denotes total value of taxable and exempted services provided, and total value of dutiable and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of the Tribunal in Foods, Fats & Fertilisers Ltd. v. Commissioner of Central Excise, Guntur [2009 (247) E.L.T. 209 (Tri.-Bang.)], this amendment being procedural, is held to be retrospective in operation. Further, the Finance Act, 2010 has retrospectively amended Rule 6 of the CENVAT Credit Rules, whereby reversal/payment of proportionate credit attributable to inputs used in the manufacture of exempted goods, either before or after the clearance of such goods is an option available to a manufacturer not maintaining separate records for receipt, consumption and use of common inputs, taking credit on common inputs used for manufacture of dutiable and exempted final products. 4. The reversal of credit for the month of Mar. '08 is, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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