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TMI Blog2011 (2) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... the exempted final products as CENVAT credit availed has been reversed and they did not have the benefit of the said credit. Decided in favor of the assessee - C.E.A. No. 5 of 2008, - - - Dated:- 28-2-2011 - N. Kumar and Ravi Malimath, JJ. Shri M.V. Chandrashekara Reddy, Advocate, for the Appellant. Shri V. Lakshmi Kumaran, Advocate, for the Respondent. [Judgment per : N. Kumar, J.]. This appeal is by the revenue challenging the order passed by the Tribunal holding that there is no requirement of payment of 8% of the price on the exempted final products, though the assessee has not maintained separate accounts. 2. The assessee M/s. Himalaya Drug Company, are manufacturers of Ayurvedic Medicaments and Cosmetics which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the same were recorded in the other relevant records, the CENVAT credit availed on such inputs were reversed immediately. Initially, at the time of purchase of such inputs the quantity of inputs to be used for exempted goods was not known and hence all the inputs would be recorded in one register and CENVAT credit would be availed immediately on earmarking the common inputs used in the exempted goods. The said inputs were recorded in the exempted goods register and credit availed was reversed. Therefore they contended that they were not liable to a pay the amount demanded in the show cause notice. After enquiry the demand in the show cause was confirmed with penalty and interest. The assessee preferred and appeal before the Tribunal. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds. Therefore they submitted that the contentions of the revenue that merely because the assessee has not maintained separate accounts he is liable to pay duty on the entire value of the goods is unsustainable. The Tribunal after considering the various Judgments on which reliance was placed has come to the conclusion that the assessee would not be covered by Rule 57AD of the Rules read with sub-rule (3) of Rule 6 of the CENVAT Credit Rules. There is no liability for payment of 8% of the price of the exempted final products as CENVAT credit availed has been reversed and they did not have the benefit of the said credit. 7. Therefore we do not see any infirmity in the order which is passed by the Tribunal which calls for interference. Accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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