TMI Blog2018 (7) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... time, the entitlement of the appellants to reverse the credit to the extent of common inputs used in the manufacture of exempted final products was in doubt. However, subsequently Rule 57CCC was inserted in the Central Excise Rules, 1944 through Finance Act, 2010 for reversal of actual credit by the manufacturer availing the credit of specified duty in respect of inputs used for manufacture of final product, which are not chargeable to duty or chargeable to nil rate of duty by payment of amount equivalent to amount of credit attributable to inputs used in the manufacture of such final products - the said amendment was retrospective in nature and covers the impugned period in this appeal. Since the appellant have reversed Cenvat credit at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n maintained, the provisions of Rule 57CC of the Central Excise Rules, 1944 would apply and hence, the appellant in respect of clearances of exempted goods i.e. Vanaspati/Refined Vegetable oil would be liable to pay an amount equal to 8% of their sale value. Accordingly, a show cause notice dated 27-8-2002 was issued to the appellant for demand of an amount of ₹ 12,25,95,962/- in respect of clearance of vanaspati ghee and refined vegetable oil during the period 10-2-1998 to 31-03-1999 along with interest and also for imposition of penalty on them. The show cause notice was adjudicated by the Commissioner vide order-in-original No. 89/LDH/03, dated 16-4-2003 by which the Commissioner ordered recovery of an amount of ₹ 4,51,574/-, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ventory and has taken credit on common inputs to manufacture dutiable and exempted products has no option other than the exceptions mentioned in sub-rule 3(a) but to reverse 8% of the price of the exempted goods as per the provisions of sub-rule 3(b) of Rule 6 of Cenvat Credit Rules, 2002/erstwhile Rule 57CC of Central Excise Rules, 1944? The aforementioned question of law was also the subject matter of decision in M/s. Hammer Forge s case (supra), wherein the impugned order passed by the Tribunal was set aside and the matter was remanded back to the Adjudicating Authority to decide the case afresh by taking into consideration the observations made by the Hon ble Supreme Court in case of Commissioner of Central Excise v. Gujarat Narmada ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llans at pages 352 to 353 of the paper book. He further contended that the issue was already settled by way of retrospective amendment in Finance Act, 2010. He argued that objection of the adjudicating authority with regard to not filing application before the Commissioner is not tenable in view of the judgment of Hon ble Gujarat High Court in the case of Shree Rama Multi Tech Ltd vs. Union of India -2011 (267) ELT 153 (Guj.). He also argued on limitation. 3. Ld. AR for the Revenue reiterated the reasoning and findings in the order of the adjudicating authority. 4. Heard both sides and perused the record. 5. We find that the dispute in this case relates to maintenance of separate accounts and inventory of the inputs meant for duti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivalent to amount of credit attributable to inputs used in the manufacture of such final products. We find that the said amendment was retrospective in nature and covers the impugned period in this appeal. Sub-section (2) of Section 69 of the Finance Act, 2010 prescribed that where a person opts to pay the amount in accordance with the provisions of Central Excise Rules, 1944 as amended by sub-section (1), he is required to pay the amount along with interest specified thereunder and make an application to the Commissioner of Central Excise along with documents as laid down therein within a period of six months from the date on which the Finance Bill, 2010 receives the assent of the President. As held by the Hon ble Gujarat High Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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