TMI Blog2020 (4) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... can be ascertained. The appellant has been availing CENVAT credit only on the proportionate amount of inputs which are gone into manufacture of either dutiable goods or in the manufacture of exempted goods which are exported. Therefore, there is no availment of common input credit. The credit is availed only on such quantity of inputs as gone into the manufacture of dutiable products or exempted products which are exported. Whether in a case where the exempted goods are exported under bond, whether the assessee is required to reverse an amount under Rule 6(3) or whether it gets covered by Rule 6(6) and hence no reversal is required? - HELD THAT:- In respect of the same appellant, this Bench in ASTRIX LABORATORIES LTD., VERSUS COMMISSION ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey started availing credit on inputs used for dutiable goods cleared to DTA and on exempted goods which were exported. Learned counsel for the appellant submits that they have no common inputs and they did not avail any CENVAT credit at the time of receipt of the inputs. They availed CENVAT credit only based on the actual consumption of inputs used for manufacture of dutiable goods or used for manufacture of exempted goods which are exported. He explains their modus operandi as follows: i. When inputs are received at the factory gate, the documents such as D.C, Central Excise invoice, Certificate of analysis and Vendor Approval etc., accompanying the inputs are sent to the security section. The security section verifies the document ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consumption coefficient. 3. The show-cause notice alleges that the appellants have not maintained separate sets of accounts for dutiable and exempted products and therefore are required to reverse 6% of the value of exempted goods. Hence, show-cause notice raised the demand for reversal of CENVAT credit along with interest and the same has been confirmed by the impugned order and penalty has been imposed. 4. Learned counsel would submit that they have availed CENVAT credit only on inputs used for dutiable goods or exported goods which are exempted based on actual consumption. Therefore, there is no requirement of them to reverse any CENVAT credit under Rule 6(3). He would submit that on an identical issue in their own case for the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g known as consumption coefficient according to which the quantity of inputs which have gone into the manufacture of that particular batch of the particular drug can be ascertained. The appellant has been availing CENVAT credit only on the proportionate amount of inputs which are gone into manufacture of either dutiable goods or in the manufacture of exempted goods which are exported. Therefore in our considered view there is no availment of common input credit. The credit is availed only on such quantity of inputs as gone into the manufacture of dutiable products or exempted products which are exported. 7. The next question for consideration is whether in a case where the exempted goods are exported under bond, whether the assessee is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Rule 6(5) of the Cenvat Credit Rules, 2002 is not relevant for the purpose of the present case. Rule 6(1), 6(2), 6(3) and 6(4) of the Cenvat Credit Rules under Cenvat Credit Rules, 2002 as well as under the Cenvat Credit Rules, 2004 remains the same. As noted earlier the object and purpose of Rule 6(6) of Cenvat Credit Rules, 2004 is to promote the policy of the Government that the benefit of duty paid on input is available as credit in respect of certain exempted goods as well as the exempted goods exported under bond. The minor change in the wordings of Rule 6(6) of the Cenvat Credit Rules, 2004 by using the term excisable goods instead of exempted goods is that the term exempted goods may not cover the dutiable goods which are e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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