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2017 (12) TMI 765

CENVAT credit - appellant have received copper, free of charge, from M/s. Enercon (I) Ltd. and manufactured certain components and cleared the same without payment of excise duty by availing the exemption under N/N. 6/2002 dated 1.3.2002 - case of Revenue is that CENVAT credit of about ₹ 95 lakhs availed by them was irregular inasmuch as the copper was meant to be used exclusively in the manufacture of exempted goods - Held that: - CENVAT credit has been availed on copper which has been received by the assessee and meant exclusively for use in the manufacture of exempted products. Since this fact has not been specifically brought to the notice of the Department - demand upheld - appeal allowed - decided in favor of Revenue. - E/CROSS/ .....

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oducts in terms of Rule 6(3)(b) of CENVAT Credit Rules, 2004 but the Department took the view that since the inputs, copper, supplied free of cost, were used exclusively in the manufacture of exempted final product, the assessee was not entitled to avail CENVAT credit on such inputs. Accordingly, show-cause notice was issued for the period October 2005 to December 2005 for demanding the CENVAT credit irregularly availed amounting to ₹ 95,01,538/-. After the due process of adjudication, the adjudicating authority passed the impugned order, in which he confirmed the demand of irregularly availed CENVAT credit but the same was ordered to be appropriated out the amount already paid at the rate of 10% of the value of the exempted goods by .....

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2 dated 1.3.2002. Since the CENVAT credit has been availed on copper which was used partly for the manufacture of exempted goods, the asseessee on their own have reversed an amount at the rate of 10% the value of exempted goods under Rule 6(3)(b) of CENVAT Credit Rules. The Department, in the proceedings before the lower authority, was of the view that the CENVAT credit of about ₹ 95 lakhs availed by them was irregular inasmuch as the copper was meant to be used exclusively in the manufacture of exempted goods. In the impugned order, the adjudicating authority, while confirming the demand of about ₹ 95 lakhs, has ordered for appropriation of the same from the total amount already reversed by them. We find no infirmity in the sta .....

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