TaxTMI 
TaxTMI 
2015 (10) TMI 1959
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt. ORDER The appellants are manufacturers of processed fabrics chargeable to central excise duty and availed Cenvat credit in terms of the provisions of Cenvat Credit Rules, 2002/2004. The period of dispute in this case is from April, 2003 to December, 2004. The appellant for processing of fabrics require steam which was being generated within the factory by burning fuel. While a part of the st....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ause notice was issued for recovery of an amount of Rs. 26,50,695/- along with interest and for imposition of penalty. 2. The show cause notice was adjudicated by the Addl. Commissioner vide order-in-original dated 3-3-2008 by which the above-mentioned demand was confirmed along with interest. However, he did not impose any penalty. The appellant filed an appeal against confirmation of deman....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d, it cannot be said that common Cenvat credit availed inputs have been used for manufacture of dutiable as well as exempted final product (steam), that in view of this, the provisions of Rule 6(2) read with Rule 6(3) of the Rules would not be applicable, that once the credit has been reversed, it has to be treated as not taken at all and in view of the above, the impugned order is not sustainable....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Rule 6(3)(b) would be applicable and on this basis, the Department seeks to recover an amount of Rs. 26,50,695/- @ 10% of the sale value of the steam along with interest. However, Rule 6(3) would come into picture only if common Cenvat credit availed inputs have been used in or in relation to the manufacture of dutiable final products as well as exempted final products and in accordance with the ....