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TMI Blog2020 (2) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... it, on being so advised by the Department of the credit attributable to the exempted goods, under intimation to the Department. Thus, it amounts to not taking of cenvat credit at all with respect to the exempted goods. Cenvat credit cannot be denied as it is held that the substantial benefit should not be denied for small procedural lapse. Further, it has been repeatedly held that Rule 6(2) read with Rule 6(3) is not the charging section or provision, it is only the mechanism to reverse the cenvat credit involved in the exempt out (finished goods) by way of a convenient formula. The impugned order suffers with impropriety and the same is mis-conceived - Appeal allowed - decided in favor of appellant. - Excise Appeal No.52715 of 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of exempted goods, although the appellant has opted to keep separate records. It further appeared that there is short payment /reversal of amount payable in terms of Rule 6(3)(1) for the period 2016-2017, amounting to ₹ 67,85,726/-.Further, they took wrong availment of cenvat credit of ₹ 7,52,138/- on the photocopies of the documents, during March, 2017 in contravention of Rule 9, which on being pointed out, was reversed vide RG-23-A Part II Entry No.2761 dated 1.4.2017. 2. Accordingly, show cause notice dated 5.5.2017 was issued proposing to demand the aforementioned amount and further, a demand of ₹ 7,52,318/- with proposal for appropriation from the amount already reversed along with interest and fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2018. Such reversal of cenvat credit amounts to not taking of credit, as per law laid down by the Hon ble Supreme Court in the case of Chandrapur Magnet Wires Vs. CCE 1996 (81) ELT page 3 . 5. It is further urged that for minor procedural lapse, substantial benefit cannot be denied. It is further urged that Rule 6 of Cenvat Credit Rules is not the charging section, it is only a mechanism to reverse the cenvat credit for clearing exempt goods, wherein the assessee opts to maintain common accounts for receipt of the cenvat credit on inputs/input services. Admittedly, this appellant has maintained separate accounts as regards input and capital goods as well as input services. Only with respect to the few common input services like secur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l will be applicable only in respect of 2nd category i.e. finished products manufactured after availing cenvat credit. It is further urged that the Adjudicating Authority has erred in raising demand for the total clearances made from 1.4.2016, which is totally erroneous and fit to be set aside. Further, without prejudice to their right of payment, they have reversed the amount of ₹ 17,85,726/- vide RG-23 Part I Entry dated 18.05.2017. Further, in view of the declarations made in ER-I Return, no case of suppression is made out. Further, reliance is placed on the Division Bench Ruling of this Tribunal in the case of Mercedez Benz India (P) Ltd. 2015 (40) S.T.R. 381 (Tribunal- Mumbai) , wherein it was held that there is no time limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is that the appellant has kept common records of only few common input services, which is of negligible amount and further, the turnover of exempted goods is also negligible as compared to dutiable goods. Further, the appellant has reversed cenvat credit, on being so advised by the Department of the credit attributable to the exempted goods, under intimation to the Department. Thus, it amounts to not taking of cenvat credit at all with respect to the exempted goods as held by the Hon ble Supreme Court in the case Chandrapur Magnet (supra). So far the amount of ₹ 7, 52,318/- is concerned, admittedly, the same has been taken by the appellant on the original documents in their possession, but it appeared that the same have been mis-pla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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