TaxTMI 
TaxTMI 
2008 (3) TMI 550
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....spondent. [Order per : P. Karthikeyan, Member (J)]. -  M/s. Pepsico Holdings India Private Limited (PEPSI) manufacture dutiable aerated water and exempted soft drink SLICE. PEPSI availed Modvat credit on inputs. They availed credit of duty paid on common inputs viz. furnace oil, sugar, activated carbon etc during the period 9/96 to 2/97. They did not maintain separate accounts for the recei....
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....osed on PEPSI under Rule 173Q of the CER. 2. PEPSI is in appeal before us against the demand for recovery of 8% of the sale price on account of the assessee using common inputs other than furnace oil during the material period. The lower authorities held that reversing the entire credit taken on the common inputs involved after clearance could not remedy the omission to follow the procedure ....
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....puts resulted from taking credit of duty paid on them. Ld. Counsel for the appellants submitted that the High Court of Judicature at Allahabad had held that in Hello Minerals Water (P) Ltd. v. UOI [2004 (174) E.L.T. 422 (All.)] that exemption benefit available subject to not taking the input credit was available to the assessee if the credit taken was reversed subsequent to removal of final produc....
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....the credit attributable to the inputs contained in exempted products, then there is no requirement of payment of 8/10% on the value of the exempted goods." 4. We have carefully considered the rival submissions. The requirement of having to reverse credit taken on any inputs when separate accounts are not maintained ceases once the assessee reverses the entire credit availed. The ratio of the....