TaxTMI 
TaxTMI 
2016 (3) TMI 568
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....t) for supply of 6 pumps. The said order also included the consideration to be paid by the defence establishment for designing and development of said pumps. The appellant herein cleared the pumps without payment of duty by availing exemption under Notification No. 10/97-CE dated 01.03.1997, reversing 8% of the value of the pumps which they ascertain as Rs. 4,00,000/- (Rupees Four lakhs only). They also billed the defence establishment by separate bill for an amount of Rs. 13,00,000/- (Rupees Thirteen Lakhs only) as design and development charges. It is the case of the Revenue that the appellant has to reverse 8% of the value of Rs. 13,00,000/- (Rupees Thirteen Lakhs only) as it is also a price charged to the defence establishment; that the....
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....e goods be considered as reversal of cenvat credit on the inputs which were consumed for manufacturing of the final products cleared with exemption. He would then draw our attention to the fact that they had categorically stated before the lower authorities that the cenvat credit availed on inputs which are commonly used for dutiable as well as exempted goods, proportionate will be approximately Rs. 4250/- (Rupees Four Thousand Two Hundred and Fifty only). He would submit that retrospective amendment on the point of reversal of cenvat credit on the inputs used for the manufacturing of exempted goods, will cover the issue in their favour. As regards the second issue, he would draw our attention to the bills submitted by the appellant to the ....
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.... incurred for manufacture of the pumps be added to the price of the pumps for payment of an amount equal to 8% of the price as per provisions of Rule 6(3)(b) of the Cenvat Credit Rules 2004; and ii. Whether the cenvat credit availed in respect of sales returns on the basis of documents under Rule 16 of Central Excise Rules 2002 is correct or otherwise. 6.1. Undisputed facts are appellants are availing the facility of cenvat credit on the inputs procured by them; they are manufacturing dutiable goods; some of the goods are cleared to defence establishment under Notification No. 10/97-CE on which central excise duty is not paid; separate books of accounts are not kept for the inputs consumed in dutiable and exempted goods; they cl....
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.... cenvat credit attributable to the pumps which are sold to defence establishment, comes to about Rs. 4250/- (Rupees Four Thousand Two Hundred and Fifty only). We accept the contentions raised by the learned CA that the amount of Rs. 32,000/- (Rupees Thirty Two Thousand only) deposited/paid by the appellant at the time of clearance of the pumps to defence establishment is more than enough to cover the cenvat credit availed on the common inputs used by them for manufacturing of the pumps which were cleared to defence establishment without payment of duty. On this ground, we find that the appeal merits acceptance and we do so. 8. As regards the issue No. (2), we find that there is no dispute that the appellant is eligible to avail the cenva....