TMI Blog2016 (9) TMI 1402X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to succeed and Annexure A4 and A6 orders passed by the appellate authority and the Tribunal are liable to be set aside, the matter should go back to the original authority for the limited purpose of deciding the question whether utilizable input credit was available during the period from March, 2000 to November, 2002. Appeal allowed in part and part matter on remand. - C.E.A. No. 10 of 2009 - - - Dated:- 2-9-2016 - P.N. Ravindran and A. Muhamed Mustaque, JJ. Shri Abraham Thomas, Thomas Mathew Nellimoottil and Sheela Devi I., SCs, for the Appellant. Shri M. Gopikrishnan Nambiar, P. Gopinath, P. Benny Thomas, K. John Mathai, Joson Manavalan and Kuryan Thomas, Advocates, for the Respondent. JUDGMENT [Judgme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on such quantity of inputs used in the manufacture of exempted goods, though the same are manufactured along with dutiable goods using the same inputs. The said officer accordingly conformed the demand in the show cause notices and held that the sum of ₹ 16,98,13,555/- is recoverable along with interest. However, having regard to the special circumstances of the case, he refrained from imposing any penalty on the assessee. 3. Aggrieved by Annexure A3 order passed by the Deputy Commissioner, Central Excise and Customs, Ernakulam I Division, the respondent filed an appeal before the Commissioner of Central Excise. By Annexure A4 order passed on 21-8-2004, the appellate authority allowed the appeal, relying on the order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of exempted final products since sub-rule (2) of the aforesaid Rules excluded inputs used as fuel from its purview. 5. When this appeal came up before us for consideration today, learned counsel appearing on both sides submitted that the issue raised is covered against the respondent and in favour of the appellant by the decision of the Apex Court in [(2009) 9 SCC 101 = 2009 (240) E.L.T. 661 (S.C.)] wherein it was held that Cenvat credit for duty paid on inputs used in the manufacture of exempted final products is not allowed. In the light of the binding decision of the Apex Court, it was conceded that this appeal will have to be necessarily allowed, and Annexure A4 and A6 orders set aside. Learned counsel appearing for the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexure A4 and A6 orders passed by the appellate authority and the Tribunal are liable to be set aside, the matter should go back to the original authority for the limited purpose of deciding the question whether utilizable input credit was available during the period from March, 2000 to November, 2002. Needless to say, if after such enquiry it is found that the input credit was available, the respondent will not be liable to pay interest for the reason that it is only a question of belated adjustment of duty credit of the input credit available. If on the other hand after such enquiry it is found that there is short fall or deficit in the input credit available, the respondent will necessarily be liable to pay interest for the period of def ..... X X X X Extracts X X X X X X X X Extracts X X X X
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