2015 (5) TMI 330 - AT - Central Excise

Duty demand - Held that - Legislature has thoughtfully enacted that when common input is used in manufacture of excisable and non-excisable goods and no evidence of allocation of input is led, the levy @ 10% by law is warranted. Therefore plea of appellant that 10% levy is unwarranted is not entertainable when no evidence is on record to show that allocation is verifiable. - Verification ordered - Decided conditionally in favour of assessee.

Summary

The judgment by Appellate Tribunal CESTAT Chennai states that a 10% levy is warranted when common input is used in manufacturing excisable and non-excisable goods without evidence of allocation. The appellant is directed to deposit 10% of the sale value as per a previous final order. No penalty is imposed due to practical difficulties in interpreting the statute.