2017 (1) TMI 1076

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....testing equipments/machinery like CPU, module, rely card, control station, etc., falling under Chapter 84, 87 and 90 of the First Schedule to the Central Excise Tariff Act, 1985. During the impugned period September 2005 to July 2007, the appellant had cleared certain goods availing the benefit of exemption at nil date of duty under Notification No.10/1997-CE dated 1.3.1997 for research in medical use and under Notification No.6/2006-CE and No.48/2004-CE. The appellant has not availed CENVAT credit in respect of inputs utilized in the manufacture of excisable goods cleared under nil rate of duty. They have however, availed CENVAT credit in respect of service tax paid on the input services such as telephone, courier, freight and clearing, ma....

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....the present appeal is whether the reversal of proportionate credit on the input services used in the manufacture of exempted goods would be sufficient compliance as per the retrospective amendment to Rule 6 of CCR, 2004 by Section 73 of the Finance Act. He further submitted that Section 73 of the Finance Act, 2010 brought retrospective amendment to Rule 6 of CCR, 2004. It is necessary to reproduce Section 73 of the Finance Act, 2010 which is as under: "73. Amendment of Rule 6 of CENVAT Credit Rules, 2004. - (1) In the CENVAT Credit Rules, 2004, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, as published in the Official Gazette vide notification of the Government of India ....

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.... (4) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 10th day of September, 2004 and ending with the 31st day of March, 2008, relating to the provisions as amended by sub-section (1), shall be deemed to be and deemed always to have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times. (5) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if t....