2010 (12) TMI 399

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....x Appellate Tribunal (the Tribunal) proposing the following question :- "Whether the Hon'ble Tribunal is right in accepting reversal of credit taken by the assessee in this case instead of upholding the adjudicating authorities order to the assessee to pay an amount equal to 8% of total price of the exempted goods as per the Rules 6(3)(b) of Cenvat Credit Rules, 2002?" 2. The respondent assessee is engaged in the manufacture and clearance of P & P medicines falling under Chapter 30 of the Central Excise Tariff Act, 1985. Some of the products manufactured by the assessee are dutiable and some of them are exempted products. The assessee was availing of modvat credit of duty paid on the raw materials used in the manufacture of dutia....

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....nterest and penalty of equal amount. Being aggrieved, the assessee carried the matter in appeal before the Tribunal who vide the impugned order allowed the appeal. 4. Heard Mr. Y.N. Ravani, learned Senior Standing Counsel for the appellant and Mr. Paresh Dave, learned advocate for the respondent. 5. Mr. Ravani, learned Senior Standing Counsel has reiterated the reasoning adopted by the adjudicating authority and has submitted that in the light of the provisions of Rule 6 of the Cenvat Credit Rules, 2002, it was incumbent upon the assessee to either maintain separate accounts or pay duty at the rate of 8% in case it did not opt to maintain separate accounts. 6. On the other hand, Mr. Paresh Dave, learned advocate for ....