TaxTMI 
TaxTMI 
2018 (3) TMI 405
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.... to 8% or 10% of the value of the exempted goods cleared by the appellant having taken CENVAT credit on common inputs and input services. 4. We find no merits in the case of Revenue as the Adjudicating Authority in Paragraph No. 21,22,23 and 26 of the impugned order, has recorded a factual position as to the demand of 8% or 10% of the value of the goods which we reproduce: 21. As regards reversal of credit of Rs. 92,761/-, it is seen that the Assessee have availed CENVAT credit on the inputs used in the manufacture of exempted goods till December 2002 and they were paying 8% amount at the time of clearance of exempt goods. It is only from January 2003, that they have started maintaining separate accounts for inputs used in exempted and d....
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....quantities of inputs consumed as against the duty free imports were from out of the duty paid inputs on which CENVAT was availed by the assessee. On reconciliation of their records, the assessee has suo motu debited the credit attributable to this excess quantity of inputs. This amount of Rs. 1,02,938/- was reversed in RG 23 Part II entry no. 328 dated 27.01.2006, and intimated the same to the Department vide their letter dated 27.01.2006, and the interest amount of Rs. 18,072/- was paid vide Challan No. 11 dated 31.01.2006. The reversal of credit along with interest is upheld. 23. Next comes the contentious issue of denial of CENVAT Credit in respect of inputs used in R&D section by the assessee. At this stage, it would be pertinent to ....
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....n relation to the manufacture after the words in is with the intention of widening the scope of usage of inputs. By the usage of these words, it is the intention of the legislature to broaden the scope of expression the usage of inputs whether the usage is direct or indirect. In this regard I recall the decision of the Hon ble Apex Court in the case of Doypack Systems Pvt. Ltd., Vs. Union of India [1988 (36) ELT 201 (S.C.)] wherein the Court interpreted the term in relation to . To quote the words of Supreme Court: "The expressions pertaining to , in relation to and arising out of, used in the deeming provision, are used in the expansive sense, as per decisions of courts, meanings found in standard dictionaries, and the principles of broa....
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....of finished goods and the denial of CENVAT credit is not proper and legal. Reliance is also placed on the following case laws: i) 1982 (10) ELT 421 (CBEC & C) ii) 1994 (74) ELT 381 (Tribunal) iii) 1995 (75) ELT 188 (Tribunal) iv) 1990 (50) ELT 314 (Tribunal) 26. The next issue for decision relates to payment of amount at 8% or 10% of Rs. 29,88,867/- on the finished goods of value Rs. 3,34,32,236/- as per Annexure 1 of the notice. The main grounds for arriving at the allegation by the Department are that even in the case of maintenance of separate records for common inputs for exempted as well as dutiable finished products, it appears that the quantities of inputs accounted in the separately maintained registers are far below the ....