9911796707
TMI Blog2022 (12) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... used in the manufacture of dutiable goods. Nevertheless, the appellant reversed the entire amount of CENVAT credit on these common inputs and input services. This fact was recorded in the reply to show cause notice itself. Therefore, the entire basis of the show cause notice that the appellant had taken CENVAT credit on common inputs and input services no longer exists. In the case of CHANDRAPUR MAGNET WIRES (P) LTD. VERSUS COLLECTOR OF C. EXCISE, NAGPUR [ 1995 (12) TMI 72 - SUPREME COURT] , the Supreme Court has held that reversal of MODVAT credit after having taken it is as good as not taking the credit at all. In this case, similarly the credit taken by the appellant has been reversed and nothing survives. Therefore, the original adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cording to Revenue the appellant is required to pay an amount of equal to 10 % of the value of these exempted goods in terms of Rule 6 (3) of CCR. 3. On being pointed out, the appellant had reversed the entire amount of CENVAT credit taken on common inputs, namely, furnace oil and input services. This fact is recorded in the show cause notice itself. However, the original adjudicating authority confirmed the demand of Rs. 15,19,593/- under Rules 6(3) of CCR and ordered its recovery under Rule 14 of CCR. He also imposed a penalty of Rs 15,19,593/- under Rule 15 of CCR. The Commissioner (Appeals) has upheld this order in the impugned order. 4. Learned Counsel for the appellant submitted that the impugned order is a non-speaking order an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eversed the MODVAT credit taken on the inputs before the clearance of the goods. In this case, the appellant had only reversed the common input credit only after the audit had pointed out much after the clearance of the goods. 7. We have considered the submissions advanced from both the sides and have perused the records. 8. In any pharmaceutical industry, maintaining separate records is a complex exercise because there are several common inputs such as solvents acetone, toluene and chemicals such as hydrochloric acid and sulphuric acid which are used in the manufacture of various pharmaceuticals some of which are exempted and others may not be exempted. The only practical way of maintaining separate records is either taking the entir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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