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2019 (3) TMI 106

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..... maintained as per Rule 6(2) of Cenvat Credit Rules which requires maintenance of separate accounts except for the inputs intended to be used as fuel - Held that:- The only lapse is that the appellant have availed and retained Cenvat credit on fuel. Though the appellant have discharged obligation prescribed under Rule 6 (2) of Cenvat Credit Rules, 2004 but by availing Cenvat credit on fuel, the obligation under sub Rule 1 of Rule 6 of Cenvat Credit Rules, 2004 has not been discharged. - In terms of Rule 6(1) of Cenvat Credit Rules, 2004, if the appellant have reversed full Cenvat credit attributed to the goods cleared under Notification No. 16/2001-CE, the appellant become eligible for exemption - Since, the ld. Counsel has agreed to rev .....

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..... taken namely, HDPE Bags. However, separate accounts for fuel was not maintained as per Rule 6(2) of Cenvat Credit Rules which requires maintenance of separate accounts except for the inputs intended to be used as fuel. The department issued second show cause notice dated 25.04.2003 for the period 27.05.2002 to 25.07.2002 demanding duty of ₹ 5,70,200/- for the part of clinker which is used in the course of cement cleared at duty exemption for earthquake relief. The notice also sought to deny Cenvat credit of ₹ 1,14,516/- on the portion of the fuel used in the manufacture of exempted cement. The 3rd show cause notice dated 05.09.2003 was issued for the period 01.08.2002 to 31.03.2003 demanding duty of ₹ 30,44,123/- on the pa .....

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..... Del.). As regards the Notification No. 16/2001-CE, he submits that in view of clause (vi) of the proviso in Notification No. 67/95-CE, exemption cannot be denied to clinker used in manufacturing the cement cleared under Notification No. 16/2001-CE. He submits that even though the cement was cleared under exemption under Notification 16/2001-CE dated 26.02.2001, in terms of clause (vi) of proviso to Notification No. 67/95-CE, since the appellant have discharged the obligation under Rule 6 of Cenvat Credit Rules, the appellant is entitled for exemption in respect of clinker under Notification No. 67/95-CE. He submits that in view of the facts of the case, there is no malafide intention of the appellant and therefore, penalties imposed by the .....

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..... or purchased out of cash donations, for the relief and rehabilitation of the people affected by the earthquake in the State of Gujarat from the whole of the duty of excise leviable thereon under both the above mentioned Acts, subject to the following conditions, namely (i) that it is certified by the manufacturer of such goods on the relevant clearance documents that the goods are intended to be donated for the relief and rehabilitation of the people affected by the earthquake in the said State without making any charge therefore ; (ii) that the goods are sent directly from the factory of the manufacturer or warehouse to the Central Government, the Government of Gujarat; or as the case may be, the relief agencies of the Central Government, .....

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..... t by availing Cenvat credit on fuel, the obligation under sub Rule 1 of Rule 6 of Cenvat Credit Rules, 2004 has not been discharged. 5. Shri J.C. Patel, Ld. Counsel during arguments submitted that they are ready to reverse the Cenvat credit on fuel if required therefore, they are entitled for the Notification No. 16/2001-CE. We find that the appellant under circumstances not entitled for Cenvat credit in respect of the value attributed to the exempted goods. In terms of Rule 6(1) of Cenvat Credit Rules, 2004, if the appellant have reversed full Cenvat credit attributed to the goods cleared under Notification No. 16/2001-CE, the appellant become eligible for exemption. Since, the ld. Counsel has agreed to reverse the credit, we direct the ap .....

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