9911796707
TMI Blog2018 (5) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... s, static converters, custom built electronic products, inductor and coil, parts of machinery, electrical bus bar, computer peripherals etc. falling under chapters 84 and 85 of CETA, 1985. They are availing facility of CENVAT credit under CENVAT Credit Rules, 2004. On verification of the records of the appellant by the CAPP audit party of the Department, it was noticed that the appellant had manufactured and cleared parts of high tension generator for X-ray valued at Rs. 81,35,760/- claiming exemption of duty in terms of Notification No.6/2002-Central Excise dt. 01/03/2002. The appellants had maintained separate accounts for receipt; consumption and inventory in respect of inputs used in the manufacture of dutiable goods and exempted goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicable. The Commissioner(AppeaIs) did not accept the contentions of the appellant and rejected their appeal. 3. Heard both sides and perused records. 4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been without considering the facts and the law. He further submitted that the demand of 10% of the value of the exempted goods under Rule 6(3)(b) of CCR is not tenable under law. He further submitted that the appellant has maintained separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of exempted goods and the appellant had informed the vide their letter dt. 04/07/2001 regarding the maintenance of separa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellant has informed the Department vide their letter dt. 04/07/2001 regarding separate records being maintained by them with regard to the inputs. Further I find that with regard to the input services, the provision of Rs. 6(3)(b) will not be applicable as held in the impugned order but the provisions of Rule 6(3)(c) are applicable. For better appreciation, the relevant Rule 6(3)(b) and Rule 6(3)(c) as applicable during the relevant period are given below:- Rule 6(3) Notwithstanding anything contained in sub-rules (1)(2), the manufacturer or the provider of output service, opting not to maintain separate accounts, shall follow either of the following conditions, as applicable to him, namely; (a)....... (b) if the exempted g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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