9911796707
TMI Blog2023 (10) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... f manufacturing polyester spun yarn ('PSY') falling under Chapter 55 of the Central Excise Tariff Act, 1985, using the duty paid Polyester staple fiber ('PSF') procured by them. 3. The Appellant is entitled to benefit under Notification No.30/2004-CE dated 09.07.2004 ('N.N. 30/2004'), wherein, the goods manufactured by the Appellant are wholly exempt from excise duty leviable thereon with the condition of non-availment of Cenvat Credit. Therefore, the Appellant is manufacturing and clearing PSY without payment of duty under Notification No. 30/2004 and on payment of duty after availing cenvat credit on the inputs. 4. The Appellant only avails Cenvat credit proportionately on inputs used in manufacture of dutiable goods and proportionately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant has wrongly availed Cenvat credit on raw material used for manufacture of exempt goods along with interest and penalty. Further, an amount of Rs.4,36,809/-alleging that transportation charges are liable to be included in the assessable value for payment of excise duty since place of delivery is buyer's premises Reply submitted by Appellant in respect of the above SCN 30.12.2016 OIO No. 52/2016-17-CE-Hyd-III-Adjn(ADC) passed by the Adjudicating Authority confirming the entire demand proposed in the SCN 27.12.2017 OIA No. HYD-EXCUS-SC-AP2-0157-17-18 passed by the commissioner Appeals, upholding the OIO and partly allowing the appeal by setting aside demand of Rs.4,36,809/-. 6. The Case of the department is as follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is required to pay the deficit amount of Cenvat credit, under Rule 6(2) read with Rule 6(3)(ii) of CCR. 9. We find that Rule 6(3) categorically starts with the words - Notwithstanding anything contained in sub-rule (1) and (2), the manufacturer of goods or the provider of output service, opting not to maintain separate accounts, shall follow any one of the following options, which, inter alia, include option to pay an amount equal to the specified percentage of value of exempted goods or exempted services, along with other option of reversing the proportionate amount under sub-rule (2) or maintain separate accounts for the receipt consumption in the inventory of inputs, as provided in clause (a) of subrule (2) and take credit only on inp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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