2015 (6) TMI 778

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....dent in appeals no.E /1471 and 1472/2006-EX (DB) are manufacture of refined vegetable oil. The period of dispute is from 1.12.2003 to 28.02.2005. In course of refining of vegetables oil, acid oil arises. During the period of dispute while the refined vegetable oil was dutiable the acid oil was fully exempt from duty. The department invoking Rule 6(3)(b) of the Cenvat Credit Rules, 2002/2004 demanded 8% of the sale value of the acid oil on the ground that the respondent have not maintained separate account and inventory of the input/input services used in or in relation to the manufacture of exempted final products and dutiable final products, while they had availed cenvat credit in respect of those input/input services. It is on this basis ....

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.... Commissioner who vide order dated 28.1.2005 dropped the proceedings. The department filed a review appeal before the Commissioner, who vide order-in-appeal dated 31.10.2006 dismissed the Revenue's appeal. Against this order of the Commissioner (Appeals,) these appeals have been filed by the Revenue . 4. Heard both the sides. 5. Shri R.K. Grover, ld. Department Representative assailed the impugned order by reiterating the grounds of appeal and pleaded that since the respondent in these cases while using common cenvat credit availed inputs/input services in or in relation to the manufacture of dutiable final products/exempted final products, have not maintained account/inventory and have not confined the cenvat credit availment onl....

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....manufactured by the respondent i.e , refined vegetable oil being manufactured by M/s Goyal Proteins and Dextrose Monohydrate and Dextrose Anhydrous being manufactured by M/s Starch Chemicals were dutiable final products and the respondent have availed cenvat credit in respect of input/input services used in the manufacture of these dutiable final products. In course of manufacture of these dutiable final products, some by-products exempt from duty also arose. Acid oil emerges in the manufacture of refined vegetable oil and during the manufacture of Dextrose Monohydrate and Dextrose Anhydrous, a by-product viz. hydrol emerges. In these circumstances of the case, it was impossible for the Respondents to maintain separate account and inventory....