2010 (12) TMI 399

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..... ference - Substantial question of law can be stated to arise out of the impugned order of the Tribunal - The appeal is dismissed.
Harsha Devani and H.B. Antani, JJ. REPRESENTED BY : Shri Y.N. Ravani, Sr. Standing Counsel, for the Appellant. Shri Paresh M. Dave, Advocate, for the Respondent. [Order per : Harsha Devani, J. (Oral)]. - In this appeal under Section 35G of the Central Excise Act, 1944 (the Act), the appellant - Commissioner of Central Excise, Ahmedabad has challenged order dated 15th June, 2009 [2009 (248) E.L.T. 504 (Tribunal)] made by the Customs, Excise and Service Tax Appellate Tribunal (the Tribunal) proposing the following question :- "Whether the Hon'ble Tribunal is right in accepting reversal of credit taken by t .....

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..... September, 2005 made by the adjudicating authority who held that though the issue in question was decided in favour of the assessee by various decisions of the Tribunal as well as a decision of the Supreme Court in the case of M/s. Chandrapur Magnet Wires Ltd., 1996 (81) E.L.T. 3 (S.C.), in the light of the fact that there was a circular issued by the Central Board of Excise and Customs wherein it has been stated that the assessee has no option but to reverse 8% of the price of exempted products, which was binding upon him, he confirmed the total demand of Rs. 70,80,591/- alongwith interest and penalty of equal amount. Being aggrieved, the assessee carried the matter in appeal before the Tribunal who vide the impugned order allowed the appe .....

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..... on of the Supreme Court in the case of M/s. Chandrapur Magnet Wires Ltd. (supra), as well as a decision of the jurisdictional High Court in the case of M/s. Maize Products (supra). In the case of Commissioner of Central Excise v. Maize Products, this Court has held as follows :- "5. The appellant has produced relevant extracts from the relevant Rule of Cenvat Credit Rules, 2002 which relates to obligation of manufacturer of dutiable and exempted products. Under sub-rule (2) of the said Rules, a manufacturer is required to maintain separate accounts regarding inputs used for manufacturing of dutiable products and inputs used for manufacturing of exempted products. However, sub-rule (3) stipulates that, in a case where the manufacturer .....

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