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TMI Blog2018 (10) TMI 1784X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 6(3) CENVAT Credit Rules, 2004, is not deniable. The acceptance of the liability and the utilization of CENVAT consequently available would render the assessee clear of the liability to that extent. The Director of the company would not have derived any particular benefit or have been aware of the requirements of the rules. No evidence has been brought on record of any intention on the part of the respondent-Director to evade any liability or of having taken any steps to facilitate such evasion. The appeal of the assessee is allowed to the extent of confirmation of demand of 11,79,366/- and limiting of the penalty to that extent - Appeal allowed in part. X X X X Extracts X X X X X X X X Extracts X X X X ..... ces were being effected to manufacturers of 'rotor blades for wind operated electricity generators' who were entitled to procurement without payment of duty. It is their contention all along that they had been limiting the availment of CENVAT credit on common inputs to the extent of consumption in the manufacture of dutiable goods. That the original authority had accepted this contention is, according to Learned Counsel, clearly evidenced by the dropping of proceedings for the period after June 2007 thus: '20.8 The claim of the assessee was got verified again and it has been reported by the concerned Range Superintendent that the material received under the GRNs used in the manufacture of exempted products had either not suffered duty or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri PKC Bose, from the penal provisions. 5. It is seen from the records that the appellant had not taken credit of duty paid on inputs used for the manufacture of 'stitch bonded glass fibre fabrics' as clearly established in the findings of the adjudicating authority and in which the credit, subsequently taken on 20th September 2007 during the course of investigation, has been appropriated along with the further payment of ₹ 11,79,334/- made then. It is, thus, amply clear that CENVAT credit had been availed by an approximate formulaic calculation without itemwise ascertainment of utilization of inputs for manufacture of exempted products. The CENVAT credit available on such inputs had been taken and duly utilized for the discharge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the liability and the utilization of CENVAT consequently available would render the assessee clear of the liability to that extent. The Director of the company would not have derived any particular benefit or have been aware of the requirements of the rules. No evidence has been brought on record of any intention on the part of the respondent-Director to evade any liability or of having taken any steps to facilitate such evasion. Considering the circumstances, we find that the impugned order was justified in dropping the proceedings against Shri PKC Bose. 9. In sum, appeal of Revenue is dismissed and the appeal of the assessee is allowed to the extent of confirmation of demand of ₹ 11,79,366/- and limiting of the penalty to that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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