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TMI Blog2023 (10) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... output service, opting not to maintain separate accounts, shall follow any one of the following options, which, inter alia, include option to pay an amount equal to the specified percentage of value of exempted goods or exempted services, along with other option of reversing the proportionate amount under sub-rule (2) or maintain separate accounts for the receipt consumption in the inventory of inputs, as provided in clause (a) of subrule (2) and take credit only on inputs under sub-clause (ii) and (iv) of the said clause (a), and pay an amount as determined under sub-rule (3A) in respect of the input services. Once it is the case that proper records have not been maintained with regard to receipt of inputs and its utilization, sub-rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty leviable thereon with the condition of non-availment of Cenvat Credit. Therefore, the Appellant is manufacturing and clearing PSY without payment of duty under Notification No. 30/2004 and on payment of duty after availing cenvat credit on the inputs. 4. The Appellant only avails Cenvat credit proportionately on inputs used in manufacture of dutiable goods and proportionately reverses the credit pertaining to exempt goods, on the basis of input-output ratio, after considering the wastage. The fact of availment of exemption under Notification No. 30/2004 is evident from the ER-1 Returns filed for the relevant period. 5. The table below would summarize the event along with the dates: DATE DES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proposing demand of Rs.1,62,60,808/- with the allegation that the Appellant has wrongly availed Cenvat credit on raw material used for manufacture of exempt goods along with interest and penalty. Further, an amount of Rs.4,36,809/-alleging that transportation charges are liable to be included in the assessable value for payment of excise duty since place of delivery is buyer s premises Reply submitted by Appellant in respect of the above SCN 30.12.2016 OIO No. 52/2016-17-CE-Hyd-III-Adjn(ADC) passed by the Adjudicating Authority confirming the entire demand proposed in the SCN 27.12.2017 OIA No. HYD-EXCUS-SC-A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so far, they are clearing both taxable and exempted finished goods. It is the case of the Revenue, that in such case, as there is some discrepancy in the utilization as per input-output ratio, accordingly, Appellant is required to pay the deficit amount of Cenvat credit, under Rule 6(2) read with Rule 6(3)(ii) of CCR. 9. We find that Rule 6(3) categorically starts with the words Notwithstanding anything contained in sub-rule (1) and (2), the manufacturer of goods or the provider of output service, opting not to maintain separate accounts, shall follow any one of the following options, which, inter alia, include option to pay an amount equal to the specified percentage of value of exempted goods or exempted services, along with other op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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