2015 (10) TMI 1918

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....d finished goods and availing Cenvat Credit on the inputs. It has been alleged that the appellant had not maintained separate accounts of raw materials used for dutiable and exempted finished goods and not followed the procedure under Rule 6 (3) (b) of Cenvat Credit Rules, 2004. A Show Cause Notice Dated 26.05.2006 was issued proposing to recover an amount of Rs. 25,71,510.00, which is 8%/10% assessable value of clearance of the exempted finished goods, during the period from 01.04.2001 to 28.02.2006 in terms of Rule 6 (3) (b) of the Cenvat Credit Rules, 2001/2004. The Adjudicating Authority confirmed the demand of an amount of Rs. 25,71,510.00 alongwith interest and imposed penalty and also appropriated the amount of Rs. 10,57,927.00 as pa....

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....well as exempting final product by using common cenvat credit availed input/input services and this additional option was to reverse the proportionate cenvat credit attributable to input/input services used in or in relation to manufacture of exempted final product. The proportionate amount of cenvat credit attributable to the input/input services used in or in relation to manufacture of exempted final product was to be calculated as per the formula prescribed in Rule 6(3A). By Finance Act, 2010, the above provisions were made retrospectively applicable. Hon'ble Gujarat High Court in case of Sh. Rama Multitech Ltd. vs UOI reported in 2011 (267) ELT 153 Guj = 2011-TIOL-940-HC-AHM-CX has held that even if a separate account have not been main....