2017 (10) TMI 1111

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..... 6(3) - it is incumbent upon the Revenue to bring on record evidence to indicate that inputs on which cenvat credit has been availed, have been used partially in the manufacture of dutiable goods as well as partially in exempted products. In the absence of such an evidence, it is not proper to raise demand of duty on the basis of doubts. It is evident that significant quantity of silver on which credit was not taken has also been used in the manufacture of dutiable goods - In the light of fact that appellant has maintained the records, regarding receipt of duty paid inputs and use of the same in the manufacture and clearance of dutiable products, demand is set aside. Appeal allowed - decided in favor of appellant. - Excise Appeal No. .....

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..... e heard Shri Amit Jain, learned Advocate for the appellant and Shri R K Mishra, learned DR for the Revenue. 3. Learned Counsel for the appellant draws our attention to the process flow chart for the manufacture of electrical contacts and submitted that appellant procured duty paid silver nitrate solution and recovered silver of 99.99% purity for further use in the factory. They have also procured non duty paid silver bars and converted the same to silver of 99.99% purity for further use. He argued that cenvat credit availed inputs were used exclusively in the manufacture of dutiable final products and appellant maintained detailed records regarding receipt and utilization. He further submitted that the entire quantum of exempted product .....

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..... of exempted products were manufactured only out of non-duty paid silver bars. 7. The mischief of Rule 6(3) is incurred in those cases, where the cenvat credit is availed on inputs and the same are used for manufacture and clearance of dutiable as well as exempted final products. For sustaining the demand of such an amount, Revenue is required to prove that duty paid credit availed inputs have been used in both the streams. The claim of the appellant is that he has maintained records containing the details of procurement of silver nitrate, silver recovered therefrom and utilization of such silver in the manufacture of dutiable goods alongwith the correspond invoices under which final product was cleared on payment of duty. We have perus .....

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