TMI Blog2013 (12) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... t has to be given of the notification granting exemption/rate of duty on the final products since the reversal of credit on the input was done at the Tribunal’s stage. There is reversal of CENVAT Credit, the question of discharge of duty liability does not arise, but the appellant is required to pay interest in accordance with the provisions of law on the amount reversed belatedly . In order to quantify the correct amount of interest liability on the appellant, he has not reversed the CENVAT Credit attributable to the inputs, the matter remanded back to the lower authorities for limited purpose of quantifying the amount of interest on the belated reversal of CENVAT Credit by the appellant, wherein they had reversed the CENVAT Credit not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that the assessee should not avail the benefit of CENVAT of the duty paid on the inputs. 4. It is the submission of the ld.Counsel that the main appellant had, in fact, reversed the entire amount of CENVAT Credit on the inputs which were utilized for manufacturing of those finished goods benefit of Notification No.30/2004 was availed. It is his submission that undisputedly the appellant had not maintained the separate accounts but had reversed the CENVAT Credit on the inputs at the end of every month by calculating the said reversal amount based upon the clearances made under Notification No.30/2004. It is his submission that Hon'ble High Court of Gujarat in the case of M/s Ashima Dyecot Ltd. 2008 (232) ELT 580 (Guj.), considered an i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed. Despite narrowing down issue to such a micro level, the adjudicating authority proceeded to come to a conclusion that the appellant is not eligible to avail the same. The adjudicating authority has tried to distinguish the judgment of Hon'ble High Court of Gujarat in the case of Ashima Dyecot on the ground that in that case the reversals were effected by the assessee on the clearances and not at the month end. We find that this distinguishing factor as has been recorded by the adjudicating authority is incorrect as their lordships in the case of Ashima Dyecot Ltd has only laid down the ratio following the law which has been settled by Apex Court in the case of M/s Chandrapur Magnet Ltd. Their Lordships judgment in the case of M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otherwise of inputs, maintenance of separate accounts for inputs is of prime importance. Since this condition was not satisfied, he confirmed the levy of duty, penalty, etc. This finding of the learned Commissioner of Central Excise is not in consonance with the observations made and the ratio laid down by the Honourable Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. (supra). 6.The findings rendered by the Honourable Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. (supra) are clearly applicable to the present matters. In that case also, the case of the Department was that reversal of credit entries is not permitted by the rules. The assessee is not entitled to remove the copper wires without payment of duty s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the duty paid in the inputs used in manufacture of these goods. The ratio laid down in this decision is squarely applicable to the facts of the present case and maintenance of separate books of accounts at the initial stage cannot be considered to be a condition precedent for the purpose of claiming the benefit of exemption to the respondent-assessee. 7.Even Rule 6(3) of the Cenvat Credit Rules, 2004 says that notwithstanding anything contained in sub-rules (1) and (2), the manufacturer or the provider of output service, opting not to maintain separate accounts, shall follow either of the following conditions, as applicable to him, namely :- (a) if the exempted goods are - (i) xxx xxx xxx xxx (ii) xxx xxx xxx xxx (iii) xxx xxx xxx ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersed the CENVAT Credit attributable to the inputs which are used in the manufacturing of exempted goods, belatedly delaying even to an extent of 6 months. In these cases, since there is reversal of CENVAT Credit, the question of discharge of duty liability does not arise, but the appellant is required to pay interest in accordance with the provisions of law on the amount reversed belatedly. In order to quantify the correct amount of interest liability on the appellant, wherein he has not reversed the CENVAT Credit attributable to the inputs, we remand the matter to the lower authorities for limited purpose of quantifying the amount of interest on the belated reversal of CENVAT Credit by the appellant, wherein they had reversed the CENVAT C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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