2017 (4) TMI 154

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.... attract payment of Central Excise Duty. The appellant also manufactures Hydrocortisone and Quinine Sulphate, which are exempted from payment of duty under Notification No. 04/2006-C.E. dated 23.03.2006. During the course of audit of records in the factory premises of the appellant, the central excise officers observed that the appellant had not paid the amount of 5% / 10% in terms of Rule 6 (3)(i) of the cenvat credit rules, 2004. Accordingly, after issuance of show cause notice, the matter was adjudicated against the appellant in confirming the demand of Rs. 20,79,378/- and imposing equal amount of penalty. On appeal, the ld. Commissioner (Appeals) vide the impugned order dated 16.1.2014 has upheld confirmation of the adjuged demand. Henc....

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.... exempted goods manufactured, it is required to pay the amount as provided in Rule 6(3) of the Cenvat Credit Rules, 2004. 6. Heard both sides and perused the records. 7. The period of dispute involved in this case is from March 2006 to October 2010. The fact is not under dispute that the appellant had used the common inputs namely, Aluminum container and Thermocol Sheet as packing material and Furnace Oil for manufacturer of both dutiable and exempted final products and that upon pointing out the fact of taking such credit by the auditing wing of Central Excise Department, the appellant had reversed the proportionate cenvat credit taken of such common inputs. However, the contention of the Department is that the appellant should not h....

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....ayment of amount equivalent to cenvat credit attributable to inputs used in or in relation manufacture of exempted goods on monthly basis. On perusal of statutory provisions effective from 01.04.2008, it reveals that the manufacturer can reverse the cenvat credit on inputs used in manufacture of exempted goods on monthly basis. In the present case, since the appellant had reversed proportionate cenvat credit attributable to common inputs used for manufacture of dutiable as well as exempted goods, the same is in conformity with the above amended provisions of Rule 6 (3A)(b) ibid. However, since the appellant has not determined and paid the cenvat credit on inputs used for manufacturer of exempted goods on monthly basis, in my opinion, it is ....