2009 (3) TMI 1066 - AT - Central Excise

Separate accounts for inputs and input credit: factual verification required before reversing verified record-based credit findings, remand ordered.

Dispute concerns maintenance of separate accounts for inputs consumed in dutiable versus exempted goods and the consequent availability of input credit; ... - Appellate Tribunal considered appeals against reversal by Commissioner (Appeals) of an original order that had found the manufacturer maintained 'separate accounts' for inputs used in dutiable and exempted boilers and had not availed credit on inputs used for exempted products. The sole legal issue was factual: whether separate records were maintained. Commissioner (Appeals) made a general observation that 'if separate accounts are not maintained, assessee is liable to pay 10% amount of the value of the price of the exempted product,' and relied on one instance (use of a 30 HP motor) where credit earlier availed was subsequently reversed. Tribunal held that a single instance was insufficient to displace the original adjudicating authority's verified finding; Commissioner (Appeals) failed to examine records and did not factually deal with that finding. Impugned order set aside and matter remanded to Commissioner (Appeals) for fresh decision after verification of records. Stay petition and appeal disposed accordingly.