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TMI Blog2019 (2) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... lant started manufacturing exempted goods also apart from dutiable goods and was availing Cenvat credit on common inputs and input services for manufacturing both dutiable exempted final goods and not reversing the proportionate Cenvat credit attributable to exempted goods or paying 10% of the valuable exempted goods. These facts were also available during the course of audit conducted during the period 16th/17th April 2008 and no objection was raised by the Revenue - the show cause notice is rightly issued to the appellant by invoking the extended period of limitation. The appellant is required either to reverse the proportionate Cenvat credit attributable to exempted final product or to pay 10% of the value of exempted final product f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein no objection was raised for availment of proportionate of Cenvat credit or for payment of 10% of the value of exempted goods. The appellant continued the same practice. Later on, an another audit was conducted during the period 17 to 21 May 2010 and it was observed that the appellant is availing Cenvat credit of common input/input services used for manufacture dutiable as well as exempted goods therefore, the appellant was asked to pay 10% of the valuable exempted goods which the appellant failed to do so, therefore, a show cause notice dt. 13.08.2012 issued to the appellant for demand of the value 10% of the exempted goods for the period August 2010 to March 2011, the show cause notice was adjudicated, the demand as per the show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Rule, 2004, therefore, I hold that on merits, the appellant have no case. 8. With regard to the issue of limitation, I find that in this case, initially, in 2007 the appellant was manufacturing only dutiable goods but in August 2007 the appellant started manufacturing exempted goods also apart from dutiable goods and was availing Cenvat credit on common inputs and input services for manufacturing both dutiable exempted final goods and not reversing the proportionate Cenvat credit attributable to exempted goods or paying 10% of the valuable exempted goods. These facts were also available during the course of audit conducted during the period 16th/17th April 2008 and no objection was raised by the Revenue. I also take note of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fertilizers Co. Ltd. (Supra), the appellant voluntarily paid the amount for the extended period of limitation but in the case in hand the appellant undertook to pay the amount and failed to do so. In that circumstance, the facts of this case altogether from the facts of the case which the appellant has relied upon. In view of the above observations, I pass the following order. 10. The appellant is required either to reverse the proportionate Cenvat credit attributable to exempted final product or to pay 10% of the value of exempted final product for the period 17.05.2009 till date 31.03.2011 along with interest. In the facts and circumstancs, no penalty can be imposed on the appellant, therefore, the penalty is dropped. 11. In thes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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