2014 (7) TMI 479

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....riff are fully exempt from duty under notification no.10/2006-C.E. dated 1.3.2006 and other items are dutiable. There is no dispute that separate account and inventory of the inputs meant for dutiable and exempted final products had been maintained by the appellant. According to the Appellant they have taken cenvat credit only in respect of the inputs used in the manufacture of dutiable final products. However, the department's objection is that the appellant have been availing telecom services, Chartered Accountant services, General Insurance services, Business Auxiliary Services and Management Consultancy Services, which are in respect of both, the dutiable as well as exempted final products, and since the appellant have not maintaine....

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....the proportionate credit would be Rs. 13,232/- against which they have also reversed an amount of Rs. 88,756/- and hence, the amount proposed to be recovered under Rule 6(3) of the Cenvat Credit Rules cannot be recovered, but this plea was not accepted. 1.2 Against this order of the Commissioner (Appeals), this appeal along with stay application has been filed. 2. Heard both the sides. 3. Shri Prabhat Kumar, Advocate, ld. Counsel for the appellant, pleaded that even if the services of telecom, Chartered Accountant, General Insurance, Business Auxiliary services and Management Consultancy Services are treated as common services for exempted as well as dutiable final products, it is impossible for the appellant to maintain separate account....

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....gly, an amount equal to 5%/10% of the value of the exempted final product, would be payable by the appellant. He, therefore, pleaded that there is no infirmity in the impugned order and that the appellant have not been able to establish prima facie case in their favour. He accordingly pleaded that this is not the case for waiver from the requirement of pre-deposit. 5. We have considered the submissions from both the sides and perused the records. 6. There is no dispute that the appellants maintained separate accounts and inventory of the inputs used for dutiable and exempted final products and took cenvat credit in respect of only that quantity of inputs which was used in or in relation to the manufacture of the final products. However, t....