TMI Blog2015 (3) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... ual to 8% of the total price including sales tax and other taxes, if any, paid on such goods. On 1.3.2002 vide clause (a), certain goods have been excluded from the benefit of scheme of 8%. It is not under dispute that the goods falling under Heading 22.04 were produced by the appellant and were excluded from the said scheme. Thus, from 1.3.2002 onwards, the manufacturer was required to pay an amount equivalent to the cenvat credit attributable to the inputs used in or in relation to the manufacture of such final products at the time of clearance from the factory. Availing the credit when the inputs are received is one action. The liability to pay an amount in respect of the exempted goods has nothing to do with the date of taking the credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted final products using the same inputs, will be required to pay an amount equal to the cenvat credit attributable to the inputs used in the manufacture of exempted final products. The appellant did not follow the said Rule for the inputs received before 1.3.2002 but reversed 8% of the value of the exempted products. The appellant was issued two show cause notices and the demands were confirmed vide order-in-original dated 25.2.2004. The appellant filed appeal against the said order before the first appellate authority who, after hearing the case, dismissed the appeal. Aggrieved by the said order, the appellant is before us. 2. The appellant has also filed a miscellaneous application saying that certain quantity of the exempted product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e into effect on 1.3.2002 and the date of receipt of the inputs or the credit taken is irrelevant for determination of the issue. 4.1 As far as the miscellaneous application is concerned, the learned AR stated that none of these claims were made in reply to the show cause notice or before the first appellate authority and in view of this position, the miscellaneous application should not be admitted and the appellant cannot be allowed to make new claims at the Tribunal level. 5. We have considered the rival submissions. The Cenvat Credit Rules, 2002 were amended and the relevant Rule is 6(3), which reads as under:- (3) The manufacturer, opting not to maintain separate accounts shall follow either of the following conditions, as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils to pay the said amount, it shall be recovered along with interest in the same manner, as provided in rule 12, for recovery of CENVAT credit wrongly taken. 5.1 It would be seen that in the case of a manufacturer who is manufacturing the dutiable as well as exempted goods, he has an option to keep a separate record for the inputs used in the manufacture of dutiable goods and separate record in respect of the inputs used in the manufacture of exempted goods. In case the manufacturer is not maintaining separate accounts, the situation is covered by Rule 6(3). Before 1.3.2002, the manufacturer was required to pay an amount equal to 8% of the total price including sales tax and other taxes, if any, paid on such goods. On 1.3.2002 vide cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal stage. These claims were never made before the original authority or the first appellate authority. However, in the interest of justice, we allow the said miscellaneous application. However, the matter is remanded back to the original authority to examine these claims of the appellant. The appellant will produce all the connected documents and details to the original authority within two months from the date of receipt of this order. The original authority will thereafter examine and decide the eligibility or otherwise in accordance with law after following the principles of natural justice. Needless to say the appellant will extend full co-operation and will not seek adjournment or delay the proceedings. 7. The appeal is disposed of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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