2015 (10) TMI 288

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....e notice for paying 10% amount on the value of exempted goods under Rule 6 (3) of the Cenvat Credit Rules 2004. That they reversed the entire CENVAT credit taken on the common inputs used for the manufacture of dutiable and exempted goods. However it was his case that as per Section 73 of the Finance Act, 2010 a procedure facility was provided to the assessee to pay the credit proportionate to the CENVAT credit involved in exempted goods. That as per Subsection 3 & 4 of Section 73 to the Finance Act, 2010 the intimation of such payment was given to the Commissioner within 6 months and Commissioner was to accept the same within 2 months. That if the amount paid by the appellant was not acceptable that Commissioner could only ask the appellan....

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....ay 10% amount on the value of exempted goods as per the provision of Rule 6(3) of the Cenvat Credit Rules 2004. Learned Advocate appearing on behalf of the appellant, interalia, relied upon the case law of Swiss Parenterals Pvt. Ltd. vs Commissioner of Central Excise & Service Tax, Ahmedabad (Supra) to argue that their case is squarely covered by this case. Para 7.3 of this case law is as follows:- "7.3 We find that the ratio of the above case laws is squarely applicable to the appellant's case. We, therefore, hold that if Cenvat credit attributable to inputs used in the manufacture of exempted final products is reversed along with interest subsequent to removal of exempted final products, then the appellant cannot be said to have tak....

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....of appellant's claim of reversal of Cenvat credit on inputs attributable to manufacture of exempted final products on the basis of appellant's records after affording opportunity to the appellant to explain their case before deciding the issue of quantum of Cenvat credit in remand proceedings." 4.1 Similarly in the case Global Pharmatech Pvt Ltd. is Commissioner of Central Excise, Chennai (Supra) following was held in Para 2:- "2. We have heard both sides. The period of demand can be split into two for the sake of better appreciation of the dispute: 1) period prior to 1-4-08 and 2) April'08 to Aug'08. The total CENVAT credit availed during the first period is Rs. 34,35,315/- and the cumulative CENVAT credit attributable t....