TaxTMI 
TaxTMI 
2016 (3) TMI 198
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....clearance of excisable goods falling under Chapter 68 of the Central Excise Tariff Act, 1985. During the course of audit of the records of the assessee during January-February 2006 and January 2007 for the period from May 2004 to September 2005, it was found that the assessee did not maintain separate accounts for inputs used in the manufacture of finished goods cleared on payment of duty and for inputs used in the manufacture of exempted finished goods as required under Rule 6(2) of the Cenvat Credit Rules, 2004. The assessee had cleared the excisable goods valued at Rs. 78,83,658/- to various Government Departments i.e. Department of Space, Ministry of Defence and Railway etc. without payment of duty under Notification No.10/97-CE dated 1....
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....further submitted that the Commissioner (Appeals) has wrongly accepted the assessee s claim that they had reversed the cenvat credit attributable on inputs used in the manufacture of exempted final product. He also submitted that it has not been established by the assessee that he maintained separate accounts and the verification could not be done by the department as the factory of the respondent was closed since August 2006. He also submitted that the Commissioner (Appeals) has wrongly relied upon the judgment of the Hon'ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. vs. CCE, Nagpur reported in 1996 (81) ELT 3 (SC). He further submitted that in the present case, the judgment of the Hon'ble Supreme Court in the case of C....
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....counsel further submitted that the respondent in reply to the show cause notice has given elaborate explanation of all the transactions mentioned in the show cause notice and the department has not been able to controvert the same by any cogent evidence. He also submitted that the respondent reversed the cenvat credit attributable to exempted goods before the issue of show cause notice and therefore it tantamounts to as if no credit has been taken and in support of this he cited the following case laws:- (i) Pepsico India Holdings Ltd. reported in 2008 (228) ELT 452 (T); (ii) Pepsico India Holdings Pvt. Ltd. reported in 2015-TIOL-1744-HC-MAD. The learned counsel also submitted that the ratio of the Hon'ble Bombay High C....
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.... the said invoices and the quantity procured were mentioned in RG23A Part-I account and the monthly cenvat returns submitted to the Range office as evident from the photocopies of the acknowledged return copies annexed in the appeal. In respect of credit taken on inputs used for manufacture of goods fully exempted under Notification No.64/95-CE dated 16.3.1995, the appellants had taken cenvat credit and subsequently reversed it before clearance of exempted final products." 6.1 Further I find that the learned counsel for the respondent has attached various correspondence along with their written submissions which show that the respondent has been maintaining separate records with respect to the input which is used for manufacture....