9911796707
TMI Blog2024 (6) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... oducts, accordingly in view of the series of judgments referred to by the learned advocate for the appellant and also in view of the retrospective amendment to the relevant Cenvat Credit Rules, 2004 vide Section 72 and 73 of Finance Act, 2010 and Notification No. 13/2016-CE(NT) dated 01.03.2016, the demand of 10% of the value of the exempted goods confirmed by the learned Commissioner in the impugned order cannot be sustained. Reliance can be placed in M/S. SHEELA FOAM PVT. LTD. VERSUS COMMR. OF CENTRAL EXCISE, KOLKATA-IV AND MR SATISH AGARWAL M/S. SHEELA FOAM PVT. LTD. EXECUTIVE ACCOUNTANT VERSUS COMMR. OF CENTRAL EXCISE, KOLKATA-IV [ 2024 (2) TMI 957 - CESTAT KOLKATA] where on similar issue demand was set aside. The impugned order is set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 2004, demand notice was issued on 06.06.2008 for Rs.38,04,053/- being 10% of the value of the goods cleared, with interest and penalty. Subsequently another show-cause notice was issued on 01.08.2008 for the period from July 2007 to March 2008 on the same grounds demanding 10% of the value of the exempted products amounting to Rs.60,85,415/- with interest and penalty. On adjudication, both the demands were confirmed with interest and penalty. Hence, the present appeal. 3. At the outset, the learned advocate for the appellant submitted that the appellant had availed cenvat credit on common inputs like sugar, liquid glucose, Sodium Meta Bi-Sulphate, Sodium Bi-Carbonate, Vanilla Flavour etc. and also input services like GTA service during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notice, availed on common inputs/input services but used in the manufacture of exempted Biscuits. 7. Undisputedly, the appellant have been using common inputs and input services in the manufacture of biscuits which are exempted from payment of duty in terms of Notification No.3/2006-CE dated 01.03.2006 as amended where the retail sale price is equivalent or less than Rs.100/- w.e.f 03.05.2007. Initially, the appellant could not maintain separate accounts for the inputs in the manufacture of dutiable goods as well as exempted products. However, the cenvat credit availed on common inputs/input service attributable to exempted Biscuits manufactured and cleared during the period May 2007 to March 2008 has been reversed with interest by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d goods reversed the same with interest before issue of Show Cause Notice, Further, they reversed an amount of Rs. 61,110/- during November 2007, pertaining To GTA-inward on inputs used for exempted goods and also reversed an amount of Rs. 1,36,786/- during July 2008, pertaining to the portion of common input services used for exempted goods. It is further stated that they have reversed an amount of Rs. 1,04,438/- along with interest, being the proportionate credit on the quantity of LPG used for the manufacture of exempted goods. Therefore, it is very much clear that The assessee has taken cenvat credit on common inputs input services used for manufacture of exempted goods and the amounts were reversed later after re of exempted goods. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
