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2016 (3) TMI 568 - CESTAT BANGALORE

2016 (3) TMI 568 - CESTAT BANGALORE - TMI - Cost of design and development charges incurred for manufacture of the pumps - inclusion to the price of the pumps for payment of an amount equal to 8% of the price as per provisions of Rule 6(3)(b) of the Cenvat Credit Rules 2004 - Held that:- Appellants have taken cenvat credit on the common inputs used for dutiable as well as exempted goods, is required to reverse an amount which is equal to 8% of the value of the goods. The records revealed that th .....

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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 accept the contentions raised by the learned CA that the amount of ₹ 32,000/- (Rupees Thirty Two Thou .....

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t the appellant is eligible to avail the cenvat credit on the pumps on which appropriate duty of excise was paid and cleared to their purchasers. We find that the lower authorities have not appreciated the details given by the appellant as annexed at Page No. 55 of the appeal memo. We, on perusal find that the appellant had correlated all the incoming payments with the documents which were available with them and the set was produced. The issue has been held against the appellant only on the gro .....

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rns 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 CVR .....

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amount of ₹ 13,00,000/- (Rupees Thirteen Lakhs only) as design and development charges. It is the case of the Revenue that the appellant has to reverse 8% of the value of ₹ 13,00,000/- (Rupees Thirteen Lakhs only) as it is also a price charged to the defence establishment; that they had availed cenvat credit in respect of the sales returns of their goods from their purchasers and availed the cenvat credit. There was no correlation of such receiving back of the goods from their purch .....

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der-in-original in its entirety. 3. Learned CA after taking us through the entire case records submits that the 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 wh .....

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had categorically stated before the lower authorities that the cenvat credit availed on inputs which are commonly used for dutiable as well as exempted goods, proportionate will be approximately ₹ 4250/- (Rupees Four Thousand Two Hundred and Fifty only). He would submit that retrospective amendment on the point of reversal of cenvat credit on the inputs used for the manufacturing of exempted goods, will cover the issue in their favour. As regards the second issue, he would draw our attenti .....

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d submit that there is clear correlation which has been brought out by the appellant as to the documents on which cenvat credit was availed. 4. Learned DR on the other hand reiterates the findings of the lower authorities and submits that on the issue of cenvat credit availed on the finished goods received back, appellant is unable to correlate the goods which were cleared from the factory premises to the goods which were received back. He would submit that there were no documents which would co .....

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f design and development charges incurred for manufacture of the pumps be added to the price of the pumps for payment of an amount equal to 8% of the price as per provisions of Rule 6(3)(b) of the Cenvat Credit Rules 2004; and ii. Whether the cenvat credit availed in respect of sales returns on the basis of documents under Rule 16 of Central Excise Rules 2002 is correct or otherwise. 6.1. Undisputed facts are appellants are availing the facility of cenvat credit on the inputs procured by them; t .....

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s 2002. 7. As regards the issue No. (1), we find that various arguments raised by both sides need not be gone into detail as the only issue is whether the appellant is required to reverse an amount which is equivalent to 8% or 10% of the value of the goods cleared by claiming exemption or otherwise. On this point, we hold that the appellants have taken cenvat credit on the common inputs used for dutiable as well as exempted goods, is required to reverse an amount which is equal to 8% of the valu .....

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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 accept the contentions raised by the learned CA that the amount .....

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