TMI Blog2017 (2) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to the input used in the manufacture of exempted goods - whether the demand on the ground that appellant was suppose to pay 8% of the value of the exempted goods in terms of Rule 6 of CCR, 2002, justified? Held that: - demand is barred by limitation as the show cause notice was issued after one year. I also observed that since the appellant had been reversing the credit at the time of clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnments availing exemption Notification No. 6/2002-CE dated 1-3-2002. At the time of clearance of the goods they have reversed the Cenvat credit attributed to the input used in the manufacture of exempted goods. The exemption was based on procedure provided under the provisions of Central Excise (Removal of the Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst CT-2 certificate. On each and every clearances under exemption they have reversed the credit on the pro- rata basis and the same was declared on the invoices. He submits that copy of CT-2 certificate were submitted to the department therefore department was very well aware of clearances of goods under exemption. The quantum of the reversal was also known to the department. Therefore there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. The CT-2 certificate obtained from the jurisdictional Asstt. Commissioner of the buyer was provided to the supplier of the goods and supplier of the goods is under obligation to submit CT-2 certificate to their jurisdictional Superintendent. It is also undisputed that reversal of cenvat credit on pro-rata basis was made by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of reversal of credit even if made after clearance of the goods before utilization of the credit i.e. sufficient requirement. Therefore even on the merit also the appellant was not required to pay 8% of the value of the exempted goods. As per my above discussion, impugned order is set aside. Appeal is allowed on merit as well as on limitation. (Pronounced in Court) - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
