2016 (12) TMI 213

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....products. The respondent was maintaining separate accounts for common input service received, consumed in the manufacture of dutiable/exempted goods on 7.3.2006 for the period April, 2005 to December, 2005. A show cause notice was issued to the respondent that the respondent is not maintaining separate account of inputs used in the manufacture  of exempted as well as final dutiable products, therefore, the respondent is required to pay amount equal to 10% of the value of the final exempted products. The matter was adjudicated. The demand was confirmed but as the respondent reversed the proportionate credit of input service after clearance of the goods alongwith interest, the Commissioner (Appeals) dropped the said adjudication proceedi....

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....he final products and it will amount to non-taking of credit and the benefit of exemption Notification No. 15/94-C.E. is available. 6. We also find that the Hon'ble High Court of Gujarat in the case of CCE, Ahmedabad-II v. Maize Products reported in 2009 (234) E.L.T. 431 (Guj.) has held that the order of the Tribunal directing re-determination of credit taken on common inputs after the assessee undertook before the Tribunal to reverse the credit taken on such inputs used in non-dutiable goods in as per the statutory requirement. Thus the reversal of the credit at the Tribunal stage i.e. much after the clearances of the exempted goods from the factory, was held to be in order. 7. The learned Jt. CDR has drawn our attention to....