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TMI Blog2019 (2) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... terials. As various types of biscuits having different MRPs were being manufactured by the assessee and as some of the biscuits attracting MRP of lower than Rs. 100 per Kg were exempted, the appellant can be said to have been manufacturing both dutiable and as also exempted final product. 2. In terms of the provisions of Rule 6 of Cenvat credit Rules, as the Cenvat credit of duty paid on the raw materials, which go into the manufacture of exempted final product is not available, the manufacturer is accepted to maintain two separate accounts, if he is manufacturing dutiable as also exempted final product. As per the appellants, they were availing the benefit of Cenvat credit only in respect of those inputs which have gone into manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Rules, which relates to the credit of duty paid on the advertisement charges by M/s Parle Biscuits Ltd. who have considered themselves as an ISD and have issued invoices in question. The said order of Commissioner is impugned before us. 5. After hearing both the sides duly represented by Learned Advocate Shri Sachin Chitnis appearing for the appellant and Learned A.R. Shri Pawan Kumar Singh, Supdt appearing for the respondent, we find that the appellants have taken a categorical stand before the adjudicating authority that they had only availed the Cenvat credit of duty paid on the inputs which have gone into the manufacture of dutiable goods and as regards the raw material used for exempted goods, no Cenvat credit stands availed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for both the products; the other is to pay an amount at the appropriate % of the value of exempted products as prescribed in the Rules. 57. I also observe that the records on file show that the party procured inputs from various suppliers. The common inputs are Sugar, Butter, Ammonia-bi- Carbonate, Funamul-87, Malic Acid, Mono Acid, and Liquid Pappin which are used in the manufacture of dutiable biscuits. The party has stated that they have maintained separate records/inventory for inputs used in the manufacture of dutiable as well as exempted goods. The party has explained in their written submission that they have taken credit considering the ratio of dutiable and exempted biscuits manufactured by them. They have submitted a year wise c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ather, they took credit of a certain amount of duty on inputs claiming that to be as per ratio of dutiable goods manufactured, and they also left a certain amount of Cenvat credit of input/input service un-utilized presumably on the basis that those inputs have been used in the manufacture of exempted products. Further, I notice that in respect of manufacturer of dutiable as well as exempted goods, Sub-Rule (2) of the Rules 6 states that such manufacturers shall maintain separate accounts for the receipt, consumption and inventory meant for inputs used in taxable as well as exempted final products and take Cenvat credit only on that quantity of input which is intended for use in goods on which duty is payable. I find that the word used in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid on the raw materials which stand consumed for the manufacture of final exempted product. If an assessee is availing the credit only in respect of the raw materials used for manufacture of dutiable products and no credit is being taken on the inputs used for exempted final product, such legislative intent gets satisfied and the provisions of Rule 6 which disallow taking of such credit gets fully complied with. As such, simple non-maintenance of accounts in respect of both the types of final products and the use of the raw materials in the manufacture of the same, cannot be adopted as a ground or a reason for denial of the benefit which is otherwise available and which an assessee has satisfied. Reading of the reasoning of adjudicating au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pport of their plea of correct availment of credit. 9. As regards, the demand of Rs. 54,39,281/- availed on the basis of invoices issued by M/s Parle Biscuits Ltd. as ISD, we are of the view that by merely doing the job work for M/s Parle, the appellant has not become a unit of M/s Parle Biscuits Ltd. In terms of Rule 7, an ISD is authorized to distribute the Cenvat credit of service tax only to its own unit and not to the job worker. Though learned Advocate has draws our attention to another Order-in-Appeal No.630/2012 dated 14.11.2012 laying down that the job worker is a unit of principal manufacturer and as such entitled to avail the credit but we note that the Tribunal in the case of M/s Ruby Confectionery Pvt. Ltd. Vs Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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