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TMI Blog2014 (7) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... es. It seems that in the present case the amount of 8% was much lower than the amount of credit so availed, thus prompting the revenue to take a reverse stand than the one taken by them in routine i.e. to in 8% of the value of the final product, which in most of the cases is higher than the credit involved - Cenvat credit cannot be disallowed if an assessee manufactures only exempted goods for a part of the year and for the balance year manufactures both exempted and dutiable goods - Decided in favour of assessee. - Appeal No. 373/2011-EX(SM) - FO ORDER NO._51390 /2014 - Dated:- 4-4-2014 - Ms. Archana Wadhwa, J. For the Appellant : Shri Vikrant Kakria, Advocate For the Respondent : Shri R.K. Mishra, DR JUDGEMENT Per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned Order-in-Original dated 08.10.2001 was issued confirming the demand of ₹ 3,25,654/- along with interest and imposing equal penalty under Rule 173-Q of Central Excise Rules, 1944/ Aggrieved with the order this appeal was filed. 2. On appeal against the said order, Commissioner (Appeals) rejected the same by observing as under:- I have gone through the records carefully. The issue to be decided in this appeal is as to whether modvat credit availed by the appellants on molasses for manufacture of Ethyl Alcohol denatured is admissible to them or not when they manufactured only exempted goods out of the said molasses. The appellants have contended that for manufacture of Denatured Ethyl Alcohol it is necessary to manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tually manufacturing dutiable as also exempted final product and was maintaining a common record in respect of the credit availed on the raw materials used in the manufacture of both the products. They were also paying 8% of the value of exempted final product. However, it so happened that in March 2000, they only manufactured exempted product. Accordingly revenue directed them to reverse the Cenvat credit. 4. The revenue entire cases is based upon the scrutiny of the fact as to during which period the exempted product were manufactured. It may happen that on one day the appellant may manufacture only dutiable product and on the other they may only manufacture exempted product. Whether in such a scenario, the duty liability of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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