2016 (8) TMI 663

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....e manufacture of Pharmaceutical products which were dutiable as well as exempted from payment of duty. A Show Cause cum demand notice was issued to them on 23.05.2006 alleging wrong availment of CENVAT Credit on inputs used in the manufacture of exempted finished goods as they failed to maintain separate records; an amount @ 8% for the period 26.06.2001 to 07.07.2004 and @ 10% from 18.7.2004 to 07.03.2005, of the price of the exempted goods, totalling to Rs. 11,09,153/- was demanded. Also, an amount of Rs. 3,95,783/- was demanded in the said Notice, alleging wrong availment of CENVAT Credit attributable to inputs contained in the exempted as well as dutiable finished goods lying in balance as on 07.03.2005 i.e the date on which the Appellan....

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....t is his contention that by virtue of retrospective amendment inserted to relevant Rule 6 of CENVAT Credit Rules through Section 70 to 73 of Finance Act, 2010, they are eligible to reverse proportionate CENVAT Credit attributable on the packing material used in the manufacture of exempted final product during the said period. He prays that the matter may be remanded to the Adjudicating authority to allow them to reverse the proportionate credit attributable to inputs used in the manufacture of exempted products. Further, challenging the confirmation of amount of Rs. 3,95,783/-, the learned Advocate submitted that there was no proposal for recovery of the amount in the demand notice, confirmation of the same is bad in law. On the Directors ....

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....ents, the Managing Director has categorically stated that they did not avail CENVAT Credit on the input Dextrose anhydrous , the principal raw material used in or in relation to the manufacture of final products, but availed only on input packing material. However, in view of the retrospective amendment to the relevant Cenvat Credit Rules by virtue of Section 70 to 73 of Finance Act, 2010, the Appellant are eligible to reverse proportionate CENVAT Credit for the disputed period attributable to the inputs used in the manufacture of exempted product. Therefore, to ascertain the above facts and to apply the retrospective amendment by allowing the Appellant to reverse the proportionate credit, it is necessary to remand the case to the Adjudicat....