Tribunal upholds decision on Cenvat credit reversal for mixed products, citing retrospective amendment compliance.

The Tribunal upheld the impugned order, rejecting the Revenue's appeal regarding the reversal of Cenvat credit due to manufacturing both dutiable and exempted products without maintaining separate accounts, as the respondents had already reversed the credit in compliance with the retrospective effect of the amendment. The case outcome confirmed the respondents' actions were in line with the law, referencing a previous case for support.

---

---

Issues Involved:
Reversal of Cenvat credit due to manufacturing both dutiable and exempted products without separate account maintenance.

Analysis:
The case dealt with the issue of reversal of Cenvat credit where the assessee manufactured both dutiable and exempted products without maintaining a separate account. The respondents had a separate account for inputs but failed to maintain a separate account of input services. They reversed the credit proportionately after availing the Cenvat credit of input services upon goods removal. An amendment under Section 73 of the Finance Act, 2010 in Rule 6 of Cenvat Credit Rules, 2004 was introduced through the Budget 2010. The Tribunal referred to a previous case, CCE, Pune-I vs. M/s.Emcure Pharmaceuticals-CESTAT-MUM, where it was held that the assessee's reversal of Cenvat credit on input service after clearance of exempted goods was in compliance with the retrospective effect of the amendment. The Tribunal noted that the issue was no longer res integra and confirmed that the respondents had already reversed the credit in line with the retrospective effect of the amendment. Consequently, the impugned order was upheld, and the Revenue's appeal was rejected. The cross objection was disposed of accordingly.

---