2007 (4) TMI 716

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....xempted goods viz., SKO and LPG charged by them at the time of clearance from the factory. As per Sub-Rule 6 (3) (b) of Cenvat Rules 2004, since they had utilized certain cenvat credit availed inputs in the manufacture of both dutiable final products and exempted goods and they had failed to maintain separate inventory and accounts for receipt and consumption of such inputs which are used in or in relation to the manufacture of such goods, which are exempt from whole of duty of excise leviable thereon. The Adjudicating Authority has not accepted the plea of the appellant that they had reversed the cenvat credit attributable to the inputs consumed in the SKO and LPG cleared under exemption. He held that they are liable to pay an amount equal....

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....e 6 of Cenvat Credit Rules there is also a provision for paying an amount equal to the cenvat credit attributable to inputs used in or in relation to the manufacture of final products for certain items. Such items are enumerated in Rule 6 (3) (a). There has been specific mention of certain exempted goods and in those cases if the manufacturer does not maintain separate accounts, it is sufficient to pay an amount equal to the credit attributable to inputs used in or in relation to such exempted final products. In the present case, the exempted final products are SKO and LPG. They do not find mention in Rule 6 (3) (a) and therefore, the appellant has to necessarily pay 10% of the sale value of the exempted goods. Further, the JDR said that th....