TMI Blog2015 (10) TMI 1959X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts and inventories of the inputs used for the manufacture of dutiable as well as exempted final products have not been maintained. In this case, though the initially credit was taken on the chemicals used for generation of steam, the same was subsequently reversed on 19-1-2005 and this fact is not disputed. Once the credit taken is reversed without using the same, the provisions of Rule 6(2) of the Cenvat Credit Rules would not be applicable. If the provisions of Rule 6(2) are not applicable, Rule 6(3) would also be inapplicable. The entire duty demand under Rule 6(3) of the Rules is without any basis. The impugned order is, therefore, set aside. - Decided in favour of assessee. - E/2495/2008 - Final Order No. A/53228/2014-SM(BR) - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause notice was adjudicated by the Addl. Commissioner vide order-in-original dated 3-3-2008 by which the above-mentioned demand was confirmed along with interest. However, he did not impose any penalty. The appellant filed an appeal against confirmation of demand of ₹ 26,50,695/- and the Revenue filed an appeal against part of the order dropping the penal proceedings. The Commissioner (Appeals) vide order-in-appeal dated 8-9-2008 upheld the demand of ₹ 26,50,695/- under Rule 6(3)(b) along with interest. Besides this, he imposed penalty of equal amount on the appellant. Against this order of the Commissioner (Appeals), this appeal has been filed. 3. Heard both the sides. 4. Shri Rupinder Singh, Advocate, ld. Counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of Rule 6(3)(b) would be applicable and on this basis, the Department seeks to recover an amount of ₹ 26,50,695/- @ 10% of the sale value of the steam along with interest. However, Rule 6(3) would come into picture only if common Cenvat credit availed inputs have been used in or in relation to the manufacture of dutiable final products as well as exempted final products and in accordance with the provisions of Rule 6(2) of the Rules, separate accounts and inventories of the inputs used for the manufacture of dutiable as well as exempted final products have not been maintained. In this case, though the initially credit was taken on the chemicals used for generation of steam, the same was subsequently reversed on 19-1-2005 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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