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TMI Blog2018 (8) TMI 1440X X X X Extracts X X X X X X X X Extracts X X X X ..... o be done in a different way. It can be seen from the provisions of Rule 6 that the entire emphasis of the said provisions are for non-availment of CENVAT credit attributable to the inputs consumed in the manufacturing of exempted goods, the procedure mentioned in Rule 6(3), envisages one of the ways of maintaining separate accounts for receipt of consumption of inputs for dutiable and exempted goods - the system adopted by the appellant is also resulting in bifurcated availment of credit only in respect of the inputs used in the manufacturing of dutiable goods, which needs to be accepted. Similar/identical issue came up before the Tribunal in the case of IPCA Laboratories Ltd [2015 (10) TMI 2325 - CESTAT NEW DELHI] wherein the Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cember, 2008 on the allegation that appellant had not maintained any separate records for respective consumption of inputs used in dutiable and exempted goods. Appellant contested the show cause notice on merits as well as on limitation. On merits it was contended and records were produced to show that they availed CENVAT credit on the common inputs based upon the actual consumption of the inputs for dutiable products, computed from the batch records maintained by them for the bulk drugs and drug intermediates. The adjudicating authority did not agree with the contentions raised and confirmed demands raised along with interest and also imposed penalties. 3. In Appeal No.E/941/2012, the issue is regarding application made by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty in Appeal No.E/2253/2010. It is his submission that the responsible officers of the appellant herein had stated that they do not maintain separate raw material records for the inputs used in dutiable and exempted goods while they claim that they avail CENVAT credit only in respect of the inputs used for dutiable goods. It is his submission that the provisions of Rule 6 of CENVAT Credit Rules do not give any leeway for doing such an activity. He would submit that the lower authorities were correct in confirming an amount equivalent to 8% or 10% of the value of exempted goods cleared by the appellant herein. 6. On careful consideration of the submissions made, we find that appellant has been taking a consistent stand before the lower au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of common inputs in one raw material register while that issues in the said raw material register indicate the issues made batch wise for manufacture of bulk drugs and drug intermediates. If it be so, working out of the materials consumed for manufacturing of excisable goods and availing of proportionate CENVAT credit on such inputs is/can be one of the scientific way of following the provisions of Rule 6(2) and 6(3) of the CENVAT Credit Rules, 2004. 9. It can be seen from the provisions of Rule 6 that the entire emphasis of the said provisions are for non-availment of CENVAT credit attributable to the inputs consumed in the manufacturing of exempted goods, the procedure mentioned in Rule 6(3), envisages one of the ways of maintaining s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said that when the inputs were taken out for manufacture of exempted goods, they ceased to be cenvated inputs and since separate accounts for the inputs were maintained at this stage, it can be considered as fulfilment of obligation. 11. In yet another case, in the case of Foods Fats and Fertilizers Ltd (supra), similar issue cropped up before the Tribunal. Tribunal after recording the factual position and submissions, in para 8 held as under: 8. ......... It is seen that the appellants had not taken entire credit on the duty paid on the inputs used in dutiable and exempted products. It is on record that they had availed credit on pro-rata basis. In other words, the credit has been taken only in respect of inputs used in dutiab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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