2015 (10) TMI 143

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....f E-bikes for sale as spares amounts to manufacture under section 2(f) (iii) of the Central Excise Act, 1944 and in respect of such spare parts, duty is chargeable on the value determined under section 4A and about this aspect there is no dispute. During the period prior to 29.4.2008, E-bikes were chargeable to duty and during that period the appellant were availing of the credit of the duty paid on the components. E bikes became exempt by an exemption Notification issued on 29.04.2008. With effect from 29.4.2008, the appellant, in respect of clearances of E-bikes, are paying an amount equal to 10% / 5% of the sale value under Rule 6 (3) (i) of Cenvat Credit Rules 2004, as they are not maintaining separate account and inventory of the compo....

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....udhir Malhotra, Advocate, the Id. Counsel for the appellant,pleaded that the disputed amount of cenvat credit whose demand has been confirmed is in respect of the inputs received during the period prior to 29.04.2008 which according to the Department would lapse, That this stand of the Department is incorrect as in this case common cenvat credit availed inputs were being used for manufacture of dutiable as well as exempted final product and in respect of exempted final product,an amount as per the provisions of Rule 6 (3) of Cenvat Credit Rules was being paid, and, therefore, the provisions of Rule 11 (3) of Cenvat Credit Rules would not apply, that Rule 11 (3) applies only in that situation where a manufacturer by using cenvat credit avail....

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....er dated 13.05.2011 had directed to pre-deposit of Rs. 20.00 Lakhs which has already been paid. He, therefore, pleaded that Rule 11 (3) would be applicable and as such the appellant have not been able to establish prima-facie case in their favour. 5. We have considered the submissions from both the sides and perused the records. 6. We find that the question as to whether the inputs for E bikes and inputs to be sold as spares after re-packing were common or were separate has been examined by the Commissioner in the order dated 03.06.2010 and in that order, the Commissioner, relying upon the verification report of the Divisional Officer reporting that E bikes kits for being assembled and the parts for being sold as spares, were being im....