TMI Blog2018 (5) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of inputs used in the manufacture of exempted final products. Appeal allowed - decided in favor of appellant. - E/20082/2018-SM - Final Order No. 20511/2018 - Dated:- 26-3-2018 - Mr. S.S Garg, Judicial Member Shri K. Krishnamurthy, Consultant VMJ Associates- For the Appellant Shri Pakshirajan, Asst. Commissioner(AR)- For the Respondent Order Per : S.S Garg The Present appeal is directed against the impugned order dt. 16/10/2017 passed by the Commissioner(Appeals) whereby the Commissioner( Appeals) has rejected the appeal of the appellant. 2. Briefly the facts of the present case are that the appellants are engaged in the manufacture and clearance of excisable goods such as compact hydraulic powe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are availing cenvat credit on manpower, rent professional fee, technical services, repair and maintenance and security, they are not maintaining separate set of accounts for receipt and usage of services for manufacture of dutiable and exempted goods and they follow the procedure of proportionate reversal of cenvat credit as per sub-rule 3A of the CCR 2004. Also the appellant submitted that their unit was subjected to audit upto 07/2014 for the period from 08/2014 to 08/2015 they are liable to pay ₹ 1,99,251/- on proportionate basis in respect of exempted clearances and the same was paid in 2015. 3. After following due process, the original authority confirmed the demand of ₹ 9,93,000/- along with interest and appropriated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6. After considering the submissions of both sides and perusal of the material on record and the various decisions relied upon by the appellant, I find that the appellant has reversed the proportionate credit relating to common input services availed by them before the issuance of the show-cause notice on being pointed out by the audit and it amounts to as if he has not availed CENVAT Credit. Further the Hon'ble High Court of Karnataka in the case of Himalaya Drug Co. cited supra held that the provisions of Rule 6(3)(i) of the CCR would not be attracted if reversal of credit is done in respect of inputs used in the manufacture of exempted final products. The Hon'ble High Court in the above case in paras 5,6 7 has observed as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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