9911796707
TMI Blog2014 (1) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... Vanaspati and Refined Oil was dutiable and unbranded Vanaspati and Refined Oil was exempted from duty. During this period the appellants were also taking Cenvat Credit on the inputs namely Ploy Jars, Tin Containers,, Pouch Filling, C.B. Boxes, Phosphoric Acid, Causitc Soda, Hydrogen Ges, Bleaching Earth, Filter Bags/Cloth, Sulphuric Acid, Aluminium Foil, Nickel Catalyst etc, which were being used in the manufacture of dutiable as well as exempted Vanaspati and Refined Oil. Further scrutiny of records revealed that appellants had not maintained separate records for the inputs used in the manufacture of dutiable and exempted goods as required under sub-rule (2) of rule 6 of the Cenvat Credit Rules, 2002. Therefore, as per provisions of Sub-R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd at the time of personal hearing and observed that the main issue is to be decided in this appeal is that whether the appellants are required to pay duty @ 8% of the value of clearance of exempted goods cleared by the appellants during the period from 1.3.2003 to 29.4.2003 as they did not maintain separate records for inputs on which Cenvat credit was taken and which were utilized in the manufacture of exempted goods. The contention of the appellants is that credit of inputs used in the manufacture of exempted goods was subsequently reversed on 9.12.2003 and that such reversal is to be treated as if they never took Cenvat Credit. On enquiry, jurisdictional Asstt. Commissioner, Central Excise Division-II, Jalandhar vide his office letter C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and Decamol and during the month of March & April 2003 the appellants has not issued/used these inputs either in the manufacture of branded or unbranded vanaspati. It is true that assessee has not maintained separate accounts or segregate the inputs utilized for manufacture of dutiable goods and duty free goods, as should have been done , the contention of the Department that in this situation, the assessee is not entitled to reverse the entries and get the benefit of the tax exemption is a question which merits serious consideration. There is no doubt that the assessee should have maintained separate accounts for duty free goods and the goods on which duty has to be paid. But attention was drawn to a departmental circular letter on this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent appeal by the Revenue.
5. Apart from the fact that there are various decision of the Tribunal laying down that wherever the Cenvat Credit stand reversed by the assessee, the provisions of Rule 6 (3)(b) of Cenvat Credit Rule, 2002 would not apply, we note that the law now stands amended retrospectively laying down that if an assessee reverses the Modvat Credit in respect of inputs used in the manufacture of final exempted product, there is no need for payment of 10% of amount of value of the exempted products. In the present case Respondent have admittedly reversed the said credit. Hence, we find no merit in the Revenue's appeals. The same is accordingly rejected.
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