TMI Blog2012 (9) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... efore demand confirmed in respect of naphtha used for generation of electricity, used for the said allied facilities. Since assessee has discharged its obligation under Rule 6 of the Cenvat Credit Rules by reversing proportionate credit in respect of usage for manufacture of exempted goods, hence pre-deposit of same is waived subject to deposit of demand confirmed aforesaid - E/430/11 - S\890\12\EB\C-II - Dated:- 19-6-2012 - S S Kang, Sahab Singh, JJ. For Appellant: Shri T C Nair, Adv. For Respondent: Shri V K Singh, Addl. Commissioner, (AR) Per: S S Kang: Heard both sides. 2. The applicants filed this application for waiver of pre-deposit of duty of Rs. 2,77,57,814/-, interest and penalty. 3. The applicants are eng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer can discharge the obligation under Rule 6 by reversing proportionate credit in respect of the inputs used in or in relation to the manufacture of exempted goods if the manufacturer is not maintaining separate records in respect of the common inputs. As the applicants were reversing credit in respect of the inputs used in the manufacture of naphtha on monthly basis in respect of the quantity which have gone in the manufacture of electricity hence the applicants are discharging the obligation under Rule 6 of the Cenvat Credit Rules. Therefore, the benefit of Notification cannot be denied, 5. The Revenue relied on the findings of the lower authority and submitted that the electricity generated from the exempted naphtha which is gone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f captively consumed within the factory of production. In exercise of the powers conferred by sub-section (1) of 1 [section 5A of the Central Excise Act, 1994 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), (hereinafter referred to as the said Special Importance Act),] the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts- (i) Capital goods as defined in the CENVAT credit Rules, 2002 manufactured in a factory and used within the factory and used within the factory of production; (ii) Goods specified in column (1) of the Table hereto annexed (hereinafter referred to as inputs') manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as petrol 5 [All goods falling under the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986), other than matches] 8. From the reading of the Notification, we find that the benefit of the notification is not available in respect of naphtha used for generation of electricity therefore the applicants had not made out a case for waiver of the demand of Rs.17 lakhs. 9. In respect of the remaining demand, we find that the benefit of Notification is available in respect of naphtha used in the generation of electricity which is used for manufactured or exempted goods and the applicants reversed the credit. Therefore, we find merit in the contention of the applicants that they have discharged the obligation under Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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