TMI Blog2016 (3) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... shment. In our view, this amount which has been reversed is more than enough or sufficient compliance of the provisions of Rule 6 of Cenvat Credit Rules 2002 which was amended retrospectively by the Government of India. The retrospective amendment talks about reversal of an amount of proportionate cenvat credit availed on the inputs which are consumed for the manufacturing of exempted goods is sufficient compliance of law for availing the cenvat credit on the common inputs. We find from the records that the appellant had specifically stated before the lower authorities that the cenvat credit attributable to the pumps which are sold to defence establishment, comes to about ₹ 4250/- (Rupees Four Thousand Two Hundred and Fifty only). We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actual matrix, we hold that the appellant has correctly availed the cenvat credit on the sales returns of the pumps - Decided in favour of assessee - E/93/2007-DB - Final Order No. 20062 / 2016 - Dated:- 18-1-2016 - SHRI M.V. RAVINDRAN, JUDICIAL MEMBER AND SHRI ASHOK K. ARYA, TECHNICAL MEMBER For the Petitioner : Shri Rajesh Kumar, CA For the Respondent : Shri N. Jagdish, AR ORDER PER: M.V. RAVINDRAN This appeal is directed against the Order-in-Appeal No. 149/2006 dated 30/11/2006. 2. Filtering out unnecessary details, brief facts are: Appellant herein received an order from TEC Committee CVRDE, Chennai (Defence Establishment) for supply of 6 pumps. The said order also included the consideration to be pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valuation of the finished goods which has been done by the Revenue is incorrect as the question involved in the case in hand is regarding the reversal of cenvat credit or an amount equivalent to 8% of the value of the goods. It is his submission that the period involved in this case is from 2002-03 to 2004-05. He submits that appellants had availed cenvat credit on the common inputs which are used for the manufacturing of the pumps which were supplied to CVRDE i.e. defence establishment by claiming exemption under Notification No. 10/97-CE. He would submit that the amount of ₹ 32,000/- (Rupees Thirty Two Thousand only) paid by them as adjustment of 8% of the value of the goods be considered as reversal of cenvat credit on the inputs w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich were cleared from the factory premises to the goods which were received back. He would submit that there were no documents which would correlate the said goods which were received back to the original clearance. It is his submission that as to the first part, appellant is required to include the value of the design and drawing and pay 8% of the said amount as i.e. the amount which has been charged by the appellant to the defence establishment for the pumps supplied to them. 5. We have considered the submissions made by both sides and perused the records. 6. The issues involved in this case are the following: i. Whether the cost of design and development charges incurred for manufacture of the pumps be added to the price of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 32,000/- (Rupees Thirty Two Thousand only) on the clearances of exempted goods to defence establishment. In our view, this amount which has been reversed is more than enough or sufficient compliance of the provisions of Rule 6 of Cenvat Credit Rules 2002 which was amended retrospectively by the Government of India. The retrospective amendment talks about reversal of an amount of proportionate cenvat credit availed on the inputs which are consumed for the manufacturing of exempted goods is sufficient compliance of law for availing the cenvat credit on the common inputs. We find from the records that the appellant had specifically stated before the lower authorities that the cenvat credit attributable to the pumps which are sold to defence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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