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TMI Blog2008 (6) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... r boxes. The respondents availed Cenvat credit on the inputs used for such gear boxes. The respondents cleared the said gearboxes on payment of duty and also without payment of duty to the Wind Mills by availing the benefit of Notification No. 6/2002-CE dt. 1-3-2002. When the respondents cleared the exempted gearbox and to wind mills, they reversed an amount of 8%/10% on the amount of the value of the gear boxes. The adjudicating authority after issuing the show-cause notice and after considering the contentions raised by the respondents came to the conclusion that the respondents had deliberately suppressed the facts with an intention to evade duty and coming to such conclusion confirmed the demand and imposed penalties. On an appeal, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. Counsel would place reliance on the decision of the Tribunal in the case of Life Long Appliances Ltd. v. Commissioner of C. Ex., Delhi-III as reported at [2000 (123) E.L.T. 1110 (Tribunal)] and would submit that the said decision was carried in appeal by the Revenue and it was dismissed by the Supreme Court as reported at [ 2006 (196) A144 (S.C.)]. 5. Considered the submissions made at length by both sides and perused the records. The issue involved in this case is whether the respondents has correctly reversed an amount of Rs. 8%/10% of the value of the gear boxes which were cleared by them to wind mills, availing the benefit of Notification No. 6/2002-CE dt. 1-3-2002. It is undisputed that the respondent had availed the Cenvat c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0-03, it is seen that no Cenvat credit under Rule 6(1) of the Cenvat Credit Rules, 2002 shall be allowed on such quantity of inputs which is used in the manufacture of exempted goods. Rule 6(2) of the Cenvat Credit Rules, 2002 gives an option to the manufacturer to maintain separate account for receipt, consumption & Inventory of inputs meant for use in the manufacture of exempted & dutiable goods and in case, he does not opt for separate records, clause (b) of Rule 6(3) requires a manufacturer to pay an amount equal to 8%/10% of the total price of the exempted goods excluding Sales Tax and other Taxes. Thus it is clear that the option to maintain the separate account or payment of 8%/10% of the price of the exempted goods can be exercised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced findings that there is nothing on record to show that the credit which was availed on the inputs were exclusively used for the manufacture of Wind Mill Gear Boxes. While the findings indicate that respondent had cleared Wind Mill Gear Boxes also on payment of duty, if that be so, the decision of the Tribunal in the case Life Long Appliances Ltd. (supra) squarely covers the issue. The ratio of the Division Bench of the Life Long Appliances Ltd. may be read: "The present appellant's case is identical. They were also producing exempted and dutiable goods fro the same inputs which were procured and stored together. The exemption which they claimed was also subject to the same condition that Modvat credit should not have been taken on t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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