TMI Blog2017 (4) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... o pay interest at the prescribed rate on the amounts paid belatedly on proportionate basis towards inputs used in exempted goods - appeal allowed - decided partly in favor of appellant. - E/52052/2014-EX[SM] - A/52662/2017-SM[BR] - Dated:- 31-3-2017 - Mr. S.K. Mohanty, Member (Judicial) Mr. Bipin Garg, (Advocate) for the Appellant Mr. Dharam Singh, AR for the Respondent ORDER Per S. K. Mohanty This appeal is directed against the impugned order dated 16.01.2014 passed by the Commissioner of Customs and Central Excise (Appeals-I), Jaipur. 2. Brief facts of the case are that the appellant is engaged in manufacture of Antibiotics, falling under Chapter 29 of the Central Excise Tariff Act, 1985. The said goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in by it. He also submitted that upon verification of the books of accounts, the Chartered Accountant has submitted certified that such reversal is in proportion with the credit taken on inputs used in the manufacture of exempted goods. 4. Further, the ld. Advocate has relied on the decision of this Tribunal in the case of IPCA Laboratories Ltd. Vs. C.C.E. Indore , Final Order No. A/51560/2015-EX-(DB) dated 06.05.2015 to submit that the appellant is not required to pay 5% / 10% of the amount value of exempted services. 5. On the other hand, the ld. DR appearing for the respondent reiterated the findings recorded in the impugned order and further submitted that since the appellant had not maintained separate records in respect of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said amended provisions of Rule 6 ibid, such reversal is in conformity with the amended statutory provisions. Thus, reversal of proportionate credit from March 2006 to March 2008 is in conformity with the provisions of the amended Rule 6 ibid. The Tribunal in the case of IPCA laboratories Ltd. (supra) while analyzing the provisions of retrospective amendment of Rule 6 ibid, has held that the appellant was entitled to reverse the proportionate credit attributable to the quantum of inputs services used in or in relation to manufacture of exempted final product and by foregoing this credit, they have compiled with this obligation. 9. The position of reversal of cenvat credit w.e.f 01.04.2008 is contained in sub-rule 3(3A)(b) ibid, p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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