TMI Blog2018 (10) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... ricity. In the annexure to the show-cause notice also, there is no specific figure shown regarding credit availed separately on inputs and input services. The demand prior to 01.03.2015 has been dropped by the adjudicating authority observing that the requirement to maintain separate accounts would be applicable only to exempted goods prior to such date. That an amendment was brought forth with effect from 01.03.2015, wherein even if there is production of non-excisable goods, the assessee is required to maintain separate accounts - Therefore, after 01.03.2015, the adjudicating authority has confirmed the demand. It is found that since there is no credit availed on inputs or input services for products of Bagasse, Press Mud or Electricit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly but, however, confirmed the demand to the tune of ₹ 2,794/- only. Aggrieved, the appellants filed appeals before the Commissioner (Appeals), who upheld the same. Hence, these appeals. 2. On behalf of the appellants, learned counsel Shri Derrick Sam referred to the table in para 2.1 of the Order-in-Original and submitted that the entire demand in respect of two show-cause notices covering Mar.‟13 to Feb.‟14 and Mar.‟14 to Feb.‟15 were dropped by the original authority. However, by mistake the appellants have preferred appeals against these orders also before the Tribunal. He, therefore, submitted that these appeals [i.e., E/41379-41380/2018] are not pressed and may be dismissed as withdrawn by the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in 2017 (346) E.L.T.450 (Tri.-Del.) and M/s. Kisan Sahkari Chini Mills Ltd. Vs Commissioner of Central Excise, Lucknow (U.P.) reported in 2012 (286) E.L.T.51 (Tri.-Del.) to argue that in similar set of facts, the Tribunal had observed that there is no requirement to maintain separate accounts and the demand made alleging that assessee has not maintained separate accounts was set aside. 4. The other issue is with regard to the credit availed on input services to the tune of ₹ 2,794/-. He submitted that the appellants had availed credit of inputs of vehicles as well as insurance for money- in-transit. He submitted that the period involved is prior to 01.04.2011 and in any case, the credit is eligible. 5. The learned Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used for or in relation to manufacture of final products. Thus, before confirming the demand under Rules 6(3)(i) 6(3)(ii), the department is required to establish that some Cenvat credit was availed by the appellant in respect of inputs which were used for the production of bagasse at the first stage of manufacture i.e. crushing of sugar cane to extract juice. We have gone through show cause notice wherein it is vaguely mentioned at Page 2 that the appellant has used Cenvatable inputs i.e. lubricant, etc. without giving details. Use of the words used lubricant, etc. in the show cause notice gives an impression that the authority issuing show cause notice was not clear about Cenvatable inputs used in the production of bagasse. Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the adjudicating authority has confirmed the demand. I find that since there is no credit availed on inputs or input services for products of Bagasse, Press Mud or Electricity even after 01.03.2015, the demand cannot sustain. 8. The learned counsel also argued with regard to the credit disallowed on input services relating to insurance on motor vehicles as well as insurance for transit-in-money. The period involved being prior to 04.04.2011, I am of the view the credit is eligible as these services fall within the category of activities relating to business of manufacture. 9. From the discussions made above, it is clear that appellants have not availed any credit on inputs/input services upto the stage of production of Bagasse, Press ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
