TMI Blog2018 (7) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... held that Where the credit taken has been reversed on inputs utilised in manufacturing of the final exempted product stand deleted in the account of the assessee, it cannot be said that the assessee has taken credit for the duty paid on the inputs utilised in the manufacture of the final product, which is exempted. Appeal allowed - decided in favor of appellant. - Appeal No. E/40663/2016 - 41290/2018 - Dated:- 20-4-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) Ms. L. Mythili, Advocate for the Appellant Shri A. Cletus, Addl. Commissioner (AR) for the Respondent ORDER The appellants are engaged in manufacture of both dutiable and exempted products. They availed the facility of CENVAT credit paid on input service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t by the appellant. The original authority also imposed penalty of ₹ 2,00,000/- under Rule 15 of CENVAT Credit Rules, 2004. In appeal, Commissioner (Appeals) upheld the same. Hence the appellants are now before the Tribunal. 2. On behalf of the appellant, ld. counsel Ms. Mythili submitted that the issue whether the appellants are liable to pay 10% of the value of exempted goods when they have already reversed the credit which has been utilized commonly for dutiable and exempted products has been settled by the following decisions:- (a) Chandrapur Magnet Wires (P) Ltd. Vs. Collector 1996 (81) ELT 3 (SC) (b) Commissioner of Central Excise, Hyderabad Vs. SPM Industries India Pvt. Ltd. 2016 (336) ELT 477 (AP) (c) IC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upport this argument, she relied upon the decision in the case of Commissioner of Central Excise Vs. Strategic Engineering Pvt. Ltd. 2014 (310) ELT 509 (Mad.). 4. The ld. AR Shri A. Cletus reiterated the findings in the impugned order. 5. I have heard the submissions made by both sides and perused the records carefully. The allegation is that the appellants had wrongly availed input service tax credit on common input services used for exempted and dutiable products. On being pointed out, the appellants have reversed the entire input service tax credit availed during the disputed period which comes to ₹ 46,17,410/-. Later, on realizing that they are eligible for credit for certain services namely architect services, maintenance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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