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TMI Blog2014 (6) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellants are manufacturing dutiable product POY and were also manufacturing the cotton yarn on which Nil rate of duty was paid by availing exemption under Notification No.30/2004-CE, dt.09.07.2004. It was also noticed that since the appellant did not maintain separate accounts for the services consumed for dutiable and exempted products, they were liable to pay the amount which is equivalent to 8% or 10% as the case may be, of the value of exempted goods cleared from the factory premises. A show cause notice was issued to the appellant. The appellant contested the entire allegations made in the show cause notice on the ground that the appellant had reversed the amount of CENVAT Credit availed on common inputs and hence there can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of entire amount of CENVAT Credit availed on the common input services is enough compliance of the provisions of Rule 6; when an assessee manufactures and clears dutiable as well as exempted product. 6. At the outset, we find that the contention of the ld. Counsel that they have reversed an amount of Rs.3,26,564/- of the CENVAT Credit availed on common input services for the period 18.01.2007 to 31.03.2008 and 01.04.2008 to 31.03.2010. To that extent, we hold that the appellant has complied with the law as has been settled by the higher Court that once the CENVAT Credit is reversed, it has to be held that the appellant had not availed such CENVAT Credit. For this, we gainfully rely upon the ratio laid down by the Apex Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appellant also needs to be directed to pay interest on both the amounts i.e. Rs.3,26,554/- and Rs.1,22,606/-. Lower authorities will calculate the interest in accordance with the provisions of law and inform the appellant accordingly, and the appellant within 10 days of such amount being intimated, will pay the same into the Government treasury. 9. Since the issue involved in this case is solely of interpretation, in the facts & circumstances of the case, we set aside the penalty imposed on the appellant. 10. Since we have held that reversal of CENVAT Credit is enough compliance of the provisions of Rule 6 of CENVAT Credit Rules, 2004, we hold that the impugned order which confirms the demand of 8% or 10% of the value of the exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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