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TMI Blog2019 (2) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... the exempted goods. Rule 6 (3) (ii) very clearly indicates that a manufacturer needs to reverse only the CENVAT credit attributable to the inputs and input services used in or in relation to the goods which are manufactured and cleared claiming exemption - In the case in hand, there is no dispute, that respondent had reversed the CENVAT credit on the inputs and input services attributable to the exempted goods cleared by them (recorded in impugned order). Appeal dismissed - decided against Revenue. - Appeal No. E/457/2010 - A/31501/2018 - Dated:- 16-11-2018 - Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) And Mr. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri V.R. Pavan Kumar, Superintendent/AR for the Appellant. Shri K. Nagaraja Rao, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after following due process of law accepted the contentions raised and held that the amounts reversed by the respondents towards the CENVAT credit attributable to the inputs and input services consumed for manufacturing of goods cleared under exemption is in sufficient compliance of the law, coming to such a conclusion he dropped the proceedings initiated by the show cause notice for the demands of an amount equivalent to 8% or 10% of the value of the exempted goods. Revenue is in appeal against the said order. 3. Learned departmental representative after taking us through the entire case records submits that the respondent herein has not followed the provisions of Rule 6 (2) which mandates for the maintenance of separate records for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent had paid off the CENVAT credit with interest, attributable proportionately to the inputs and input services utilized for manufacturing of the exempted goods. 6. We find that the issue is now well settled. The Government of India by an amendment to Rule 6 (3) of CENVAT Credit Rules, 2004 (w.e.f.01/04/2008) had introduced the following provisions. (3) Notwithstanding anything contained in sub-rules (1) and (2), the manufacturer of goods or the provider of output service, opting not to maintain separate accounts, shall follow either of the following options, as applicable to him, namely:- (i) The manufacturer of goods shall pay an amount equal to ten percent of value of the exempted goods and the provider of outpu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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