2017 (3) TMI 240

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....the appellant is required to maintain separate account of input/input services for manufacturing of dutiable as well as exempted final products. As during the impugned period, the appellant was not maintained separate account of input/input services therefore, the proceedings were initiated against the appellant to demand 10% of the value of exempted final products in terms of Rules 6(3) of the Cenvat Credit Rules, 2004. 3. The appellant contended before the Adjudicating Authority that they have already reversed the said amount and maintaining sufficient balance in Cenvat Credit account and have not utilized the amount of Cenvat Credit attributable to exempted final product, therefore, the proceeding against appellant be dropped but the ....

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....bad High Court in the case of Hello Minerals Water (P) Ltd. v. Union of India reported in 2004 (174) E.L.T. 422 (All.) has held that the reversal of the credit can be made even subsequent to the clearance of the 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 requiremen....

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....redit. Hence, in this case, both the conditions are satisfied. Hence, item no. 1 of the table to Notification No. 14/2002-C.E would apply and accordingly the grey fabrics would attract nil rate of duty." 8. The learned Jt. CDR, in view of the above, emphasized, that only when the credit is reversed before utilization and before clearance of the exempted goods, only then it will amount to not taking the credit. Hence, he prayed that the matter may be remanded to the Commissioner to verify this aspect. We, however, note that there is no specific finding by the Hon'ble Supreme Court that if the credit is reversed after utilization and after the clearance of the exempted goods, it would still amount to taking the credit and exemption w....