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TMI Blog2023 (6) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... he ground that this period is not covered under the retrospective amendment. The case of the department is that since the assessee has availed the Cenvat credit in respect of common input service used in the manufacture of dutiable and exempted goods, the appellant is required to pay 10% of the value of the goods cleared without payment of duty (exempted goods). From the facts it is undisputed that the appellant have been reversing Cenvat credit proportionate to the credit on input service used for exempted goods along with interest, therefore, first the credit though availed at the time of receipt of input service but after reversal thereof along with interest the position is as if credit was not availed. Rule 6 of the Cenvat Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Ghanasyam Soni, Addl. Commissioner (AR) for the Respondent ORDER M/s. PI Industries Limited (earlier known as Isagro (Asia) Agrochemicals Pvt. Ltd.) has filed this appeal assailing the impugned order-in-original dated 20-01-2013 passed by the Commissioner, Central Excise Customs, Surat. 2. Brief facts of the case are that the appellant are engaged in manufacture of excisable goods falling under chapter No. 28,29,31 38 of the Central Excise Tariff Act, 1985. They are also availing Cenvat Credit under Cenvat Credit Rules 2004 on central excise duty paid on Inputs, Capital Goods and Input Services. Appellant is manufacturing Siapton 10L which was exempted. The said goods were cleared without payment duty but neither ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided under Rule 6(7) of Cenvat Credit Rules and not the entire period of demand. 4. He also submits that it is an accepted principle of law that reversal of Cenvat Credit attributable to exempted goods or service amount to not taking Cenvat credit at all. However, the Ld. Commissioner while appropriated entire amount of Cenvat credit along with interest attributable to common input services for the period April 2004 to June 2009, dropped demand only for the period April 2004 to March 2008 being covered under Rule 6 (7) of the Cenvat Credit Rules and confirmed the demand and recovery amounting to Rs. 1,26,19,534 along with interest for the period April 2008 to June 2009, which is bad in law. Appellant having reversed entire amount of Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned commissioner reads as follows : (7). Where a dispute relating to adjusting of credit on inputs or input services used in or in relation to exempted final products relating to the period beginning on the 10th day of September, 2004 and ending with the 31st day of March 2008 (both days inclusive) is pending on the date on which the Finance Bill, 2010 receives the assent of the President, then notwithstanding anything contained in sub-rules (1) and (2) and clauses (a) and (b) of sub-rule (3), a manufacturer availing CENVAT credit in respect of any inputs of chargeable to duty and also other final products which are exempted goods may pay an amount equivalent to CENVAT credit attributable to the inputs or input services used in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of common input service used in the manufacture of dutiable and exempted goods, the appellant is required to pay 10% of the value of the goods cleared without payment of duty (exempted goods). From the facts it is undisputed that the appellant have been reversing Cenvat credit proportionate to the credit on input service used for exempted goods along with interest, therefore, first the credit though availed at the time of receipt of input service but after reversal thereof along with interest the position is as if credit was not availed. We are also of the view that Rule 6 of the Cenvat Credit Rules is not enacted to extract illegal amount from the assessee. The main objective of the Rule 6 is to ensure that the assessee should not avail th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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