TMI Blog2016 (12) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... cenvat credit already made by the appellant is to be considered as not taken ab initio - there is no justification for demand of the amount equivalent to 10%/ 5% of the value of electricity wheeled out. We are of the considered view that the failure of the appellant to follow the procedure perfectly should not come in the way of extending the substantial benefit of proportionate reversal. However, we find that in the order passed by the lower authority, he has not given any finding as to whether the reversal already made satisfies the test of proportionate reversal in terms of quantum of reversal. Hence, we are of the considered opinion that the matter is to be remanded to the original adjudicating authority to verify whether the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in this case). In the impugned order, demands for reversal to the extent of ₹ 1,47,81,450/- was confirmed alongwith interest as well as imposition of penalty. 2. In the present appeal, the demand for reversal of cenvat credit has been challenged. Their submission is that a part of electricity generated within the plant has been sold outside, though the main part of the electricity generated was used captively for manufacture of final products. They further submitted that they have already reversed proportionate share of the credit availed on inputs as well as input services which stand used in the generation of electricity which has been sold outside. Accordingly, they have submitted that there is no justification for demanding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lectricity wheeled out to Electricity Board. The same also stand intimated to the department. Such claims when made before the original authority has not been accepted by him for the reason that the appellant has not followed all the conditions specified in Rule 6(3)(i)(ii) and (iii) of the Cenvat Credit Rules, 2004. These sub-rules mandate that the assessee should intimate their option to the department for proportionate reversal; carry out reversal on provisional basis and finally complete such reversal and intimate the department. Admittedly, such detailed procedure has not been complied with by the appellant. However, it is the submission of the appellant that they have already reversed the proportionate credit to the extent of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit of proportionate reversal. However, we find that in the order passed by the lower authority, he has not given any finding as to whether the reversal already made satisfies the test of proportionate reversal in terms of quantum of reversal. Hence, we are of the considered opinion that the matter is to be remanded to the original adjudicating authority to verify whether the amount of cenvat credit already reversed alongwith interest satisfies the requirement of proportionate reversal. We also make it clear that there is no justification for demand of the amount equivalent to 10%/ 5% of the value of electricity wheeled out. The appellant should be given an opportunity to argue their case before the original adjudicating authority who is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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