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TMI Blog2017 (1) TMI 1076X X X X Extracts X X X X X X X X Extracts X X X X ..... e, rely card, control station, etc., falling under Chapter 84, 87 and 90 of the First Schedule to the Central Excise Tariff Act, 1985. During the impugned period September 2005 to July 2007, the appellant had cleared certain goods availing the benefit of exemption at nil date of duty under Notification No.10/1997-CE dated 1.3.1997 for research in medical use and under Notification No.6/2006-CE and No.48/2004-CE. The appellant has not availed CENVAT credit in respect of inputs utilized in the manufacture of excisable goods cleared under nil rate of duty. They have however, availed CENVAT credit in respect of service tax paid on the input services such as telephone, courier, freight and clearing, market research, IT services, CA services, etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oportionate credit on the input services used in the manufacture of exempted goods would be sufficient compliance as per the retrospective amendment to Rule 6 of CCR, 2004 by Section 73 of the Finance Act. He further submitted that Section 73 of the Finance Act, 2010 brought retrospective amendment to Rule 6 of CCR, 2004. It is necessary to reproduce Section 73 of the Finance Act, 2010 which is as under: "73. Amendment of Rule 6 of CENVAT Credit Rules, 2004. - (1) In the CENVAT Credit Rules, 2004, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, as published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue) numb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 10th day of September, 2004 and ending with the 31st day of March, 2008, relating to the provisions as amended by sub-section (1), shall be deemed to be and deemed always to have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times. (5) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government had the power to make rules under section 37 of the Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 (330) ELT 872 (All.) 5. On the other hand, the learned AR reiterated the findings of the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record, I am of the considered opinion that after the amendment to Section 73 of Finance Act, 2010 by which Rule 6 was amended retrospectively and as per the amended Rule, if an assessee reverses the proportionate credit in respect of input services used in relation to the manufacture of exempted goods, then it would be a full compliance of the said provision. Further, by following the said amendment, the Tribunal and the High Court held that the assessee has to reverse proportionate CENVAT credit and that would tantamount to compliance of provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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