TaxTMI 
TaxTMI 
2013 (2) TMI 142
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.... availed CENVAT credit during the said months is correct as per law in as much as the respondent has in fact availed CENVAT credit proportionate to the quantity of the DBM used in the further manufacture of dutiable goods based on the formula mentioned in the paragraph 7.above which was not provided in the extract CENVAT Credit Rules, 2004 ? iii. When the amendment to Rule 6 of the CENVAT Credit Rules, 2004 by the Finance Act, 2010 is optional to the respondent and the respondent has to opt to avail the benefit provided in the amendment by filing application with necessary certificate from a Chartered Accountant/Cost Accountant whether direction given by the Hon'ble CESTAT, Chennai to the Original Adjudicating Authority to verify the reversal of the credit for the month of March, 2008 in the light of the amendment to the Finance Act, 2010 is correct as per law ? And iv. Whether the impugned Final Order No.609/2010 dated 7.6.2010 of the Hon'ble CESTAT, Chennai requires modification or not ?" 2. The period covered in this appeal at the instance of the Revenue is from 1st January 2008 to March 2008. It is seen from the documents placed before this Court that the assess....
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....esite during the months of January and February, 2008 and during the month of March 2008, although the credit was taken, some proportionate credit was reversed on the basis of actual unit consumption of Dead Burnt Magnesite. In the face of the reversal of the credit claimed by the assessee, the Tribunal held that the matter required investigation by the Adjudicating Authority and consequently set aside the order of the Adjudicating Authority and remanded the matter to the said Authority for carrying out the verification as regards the reversal of the credit for the month of March 2008, on the basis of the formula provided for under Rule 6(3A) of the CENVAT Credit Rules, 2004. Aggrieved by this, the present appeal has been filed by the Revenue. 6. Learned Standing Counsel for the appellant submitted that as per the amended provision in Section 73 by the Finance Act, 2010, an assessee, who opts for payment in accordance with the amended provision in Sub-Section (1) of Section 73 of the Finance Act, 2010, has to produce documentary evidence and necessary certificate from a Chartered Accountant/Cost Accountant, certifying the amount of input credit attributable to the inputs ....
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....rch 2008, where there was a reversal of entry, the claim has to be verified on the basis of the formula provided under Rule 6(3A) of the CENVAT Credit Rules. Hence, no exception could be taken to the order of the Tribunal. 9. We agree with the contention of the learned counsel for the respondent assessee. As seen from the adjudication order referring to the reply of the assessee, a specific stand was taken by the assessee that for the months of January and February 2008, it had not made any credit entry on the furnace oil used in the manufacture of exempted goods and during the month of March 2008, whatever credit was taken, the same was reversed by the assessee. In the course of appeal before the Tribunal, it is no doubt true that the Tribunal accepted the above said fact, particularly as regards January and February 2008. Even though the learned counsel for the Revenue stated that such a finding is perverse, when read in the context of the reply filed by the assessee, on which there was no material from the Revenue side for rejection, we do not find any ground to uphold the contention of the Revenue as regards the non utilisation of any CENVAT credit for the month of Ja....
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....rged by the manufacturer for the sale of goods at the time of clearance from their factory by adjustment in the credit account maintained under Sub-rule (3) of Rule 57G or in the accounts maintained under Rule 9 of Sub-rule (1) of Rule 173G or if such adjustment is not possible for any reason, by cash recovery from the manufacturer availing of the credit under Rule 57A. Sub-rule (2) thereof provided that in respect of inputs (other than inputs used as fuel) which are used in or in relation to the manufacture of any goods, which are exempt from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty, the manufacturer shall maintain separate inventory and accounts of the receipt and use the inputs for the aforesaid purpose and does not take credit of the specified duty on such inputs." 12. Section 69(2) of the Finance Act, 2010 brought in Rule 57CCC, which provided for making such reversal of the entry for the period from September, 1996 to 28th February, 1997, a manufacturer availing credit in respect of any input other than input used as fuel and manufacturing final products chargeable to duty and products not chargeable to duty or chargeable to intere....