TaxTMI 
TaxTMI 
2007 (8) TMI 569
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....at the appellants were engaged in manufacture of Pharmaceutical Products (Allopathic & Ayurvedic Medicines) and were availing cenvat credit on the duty paid on the inputs. Scrutiny of records of the appellants revealed that the appellants were engaged in manufacture of dutiable goods as well as exempted goods, namely, Utrone whereunder common inputs, on which credit had been taken, were being used. No separate records were maintained by the appellants for inputs used in manufacture of exempted goods and dutiable goods. As per provisions contained under sub-rule 3(b) of Rule 6 of Cenvat Credit Rules, 2004, if no separate accounts are maintained by the party, then they are requested to pay an amount equal to 10% of the total value of the clea....
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....credit of duty on the input utilized in the manufacture of exempted final product. As such his entire order being illegal. is liable to be quashed; ã By ignoring the fact of deposit of Rs. 59,900/- on 19-9-2005 it had been fully established that the appellants had made reversal of such credit on the inputs utilized in the manufacture of UTERONE, which was exempt from excise duty; ã The appellants have followed the law in so far as the requirement of reversal of credit on the input used in the exempted final product is concerned; ã That the subjected issue the Hon'ble Supreme Court in Chandrapur Magnet Wires (P) Ltd. v. Col....
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....ovisions for facility of credit is as good as tax paid and adjusted on goods on the basis of several commitments. As such the Ld. Respondent has grossly erred in denying the facility, otherwise available to the appellants. ã On the similar facts and points of law that the then Ld. Commissioner (Appeals) had allowed the appeal of M/s Durga Sewa Samiti vide O-in-A No.40-CE/APPL/KNP/04 dated 3-2-2004; ã Even otherwise the period of demand is from 19-7-2004 to 30-9-2005 and the show cause notice had been issued on 11-2-2006 and the entire facts were well known to the department, the notice issued by invoking the extended period is clearly barred by limitation in as ....
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....f total value of clearances of exempted goods has been confirmed on the ground of non-maintenance of separate records for inputs used in manufacture of exempted goods whereas the appellants have pleaded that once the Cenvat credit involved on inputs used in manufacture of exempted goods has been paid/reversed, it cannot be said to have taken credit on said inputs. Thus, the point arises for consideration is as to whether the appellants can be said to have availed Cenvat credit or not on the inputs used in manufacture of exempted goods. 5. I have carefully considered the facts of the case and find that the Adjudicating Authority has himself admitted that the appellants were not maintaining separate inventory of inputs used in manufac....