2006 (12) TMI 47

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....missioner (Appeals), has confirmed O-I-O No. 22/05, dated 23-8-05 passed by Assistant Commissioner of Central Excise, Bangalore confirming demands and imposing penalty for not having paid 8% of the sale price excluding sales tax and other taxes as required under Rule 6 of Cenvat Credit Rules, 2002 as they had cleared exempted goods and had not maintained separate inventories. The appellants had cl....

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....tion before the authorities and before the Tribunal is that before the goods were removed, they reversed the credit along with interest and the situation was that as if they have not availed the Cenvat credit and therefore, the question of their depositing 8% of the sale price as required under Rule 6 of Cenvat Credit Rules, 2002 for not maintaining separate inventories does not arise. They had ta....

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....t on the duty discharged and therefore, the question of reversing 8% of sale price in terms of Rule 6 of Cenvat Credit Rules does not arise. It is pointed out by learned Chartered Accountant, that the revenue has relied on the ruling of National Information Technologies Ltd. [2005 (179) E.L.T. 404)] wherein the assessee had not maintained separate inventories in respect of duty paid inputs used in....

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....new rules. Therefore, on reversal of the Cenvat credit availed on inputs on removal of exempted goods, the situation is put back inasmuch as the appellants are deemed not to have availed credit at all. This is not the situation as in the case of National Information Technologies where the assessee had not reversed the input availed on the exempted goods. Hence, the Tribunal confirmed the demands a....