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TMI Blog2008 (6) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... ber (J) Shri S.N. Prasad, SDR, for the Appellant. Shri S.S. Sekhon and Mrs. Mani Prakash, Consultants, for the Respondent. [Order] - These appeals are filed by the Revenue against Order-in-Appeal No. PI/245-246/06 dt. 15-6-2006 vide which the ld. Commissioner (Appeals) has set aside the order-in-original. 2. The relevant facts that arise for consideration are the respondents are engaged in the manufacture of gear boxes. The respondents availed Cenvat credit on the inputs used for such gear boxes. The respondents cleared the said gearboxes on payment of duty and also without payment of duty to the Wind Mills by availing the benefit of Notification No. 6/2002-CE dt. 1-3-2002. When the respondents cleared the exempted gearbox ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -in-original be rein stated. 4. The ld. Counsel appearing on behalf of the respondent submits that the findings of the adjudicating authority as well as the ld. Commissioner (Appeals) would indicate that the appellants had not availed any credit on the inputs which are exclusively used for the exempted products. It is his submission that there is nothing on record to show which inputs were exclusively used for wind mill gear boxes. The ld. Counsel would place reliance on the decision of the Tribunal in the case of Life Long Appliances Ltd. v. Commissioner of C. Ex., Delhi-III as reported at [2000 (123) E.L.T. 1110 (Tribunal)] and would submit that the said decision was carried in appeal by the Revenue and it was dismissed by the Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. 7/2002-CE dated 1-3-02. To manufacture the said Wind Mill Gear Boxes, certain inputs such as Gear Boxes Casting, Top Covers, Gears, Bearings, Pinions, Slow Speed Gears and Covers and Oil catchers etc. are used. From the submissions made by the appellants, it is seen that there are common inputs used for manufacture of Wind Mill Gear Boxes and other Gear Boxes on which Cenvat credit is availed. On going through the Board's dated 9-10-03, it is seen that no Cenvat credit under Rule 6(1) of the Cenvat Credit Rules, 2002 shall be allowed on such quantity of inputs which is used in the manufacture of exempted goods. Rule 6(2) of the Cenvat Credit Rules, 2002 gives an option to the manufacturer to maintain separate account for receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit availed on common inputs. In the present case, the appellants have reversed 8%/10% of the price of the Wind Mill Gear Boxes cleared without payment of duty in which common inputs were used. Thus, the appellants have exercised the option of 6(3)(b) by paying 8%/10% of the price of the goods. Thus the stand taken by the Adjudicating Authority are not sustainable and the Orders-in-Original are liable to be set aside". It can be noticed above reproduced findings that there is nothing on record to show that the credit which was availed on the inputs were exclusively used for the manufacture of Wind Mill Gear Boxes. While the findings indicate that respondent had cleared Wind Mill Gear Boxes also on payment of duty, if that be so, the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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