TaxTMI 
TaxTMI 
2018 (8) TMI 475
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....as non- conventional energy device without payment of duty by availing exemption under Notification No. 6/2006-CE dated 01.03.2006. They are also clearing the goods on payment of duty. The case of the department is that the appellant are availing the credit on the common input which are used in the manufacture of dutiable and exempted goods, accordingly demand notice for an amount equal to 10% of the value of exempted goods was proposed under Rule 6 (3) of CENVAT Credit Rules, 2004. The demand was dropped by the adjudicating authority. Being aggrieved by the order in original Revenue filed appeal before Ld. Commissioner (Appeals) which came to be allowed which was challenged by the appellant before this Tribunal. In the first round this Tri....
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....ned Form- 4 register wherein the account of non cenvatable inputs were maintained. Therefore, on the ground that appellant have not maintained separate accounts, the demand under Rule 6 cannot be made. He also produced a chart in his written submission prepared on the basis of RG- 23A part - I wherein opening balance, quantity received, and quantity consumed in dutiable boiler and closing balance were shown. In this chart not a single input is appearing as negative balance. He submits that with this detail it is clear that no common input on which CENVAT credit was availed used in the exempted goods. 3. Sh. G. Jha Ld. Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. We have caref....
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....uthority, we find that the Commissioner (Appeals) has not examined the above fact and has made a general observation that if separate accounts are not maintained, assessee is liable to pay 10% amount of the value of the price of the exempted product. For the above proposition, he has simply replied upon one instance where the appellants have utilised the modvat credit availed input i.e. 30 HP motor, in which case the credit so availed was subsequently reversed by them. We agree with the learned advocate that this single instant is not sufficient to hold against the appellant that separate accounts were not being maintained by them. This factual position can be examined by verifying their record, which has not been done by Commissioner (Appe....
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....the basis that the assessee has not maintained the separate account, cannot be confirmed. In the present case it is admitted facts that the appellant have maintained 2 separate accounts one for cenvatable input in RG-23A/C part-I register and for non cenvatable inputs record is maintained in Form-IV register. Ld. Counsel submits the following chart on the basis of RG-23A part of 1. Sr. No. Description of Raw Material Opening Balance Qty. Recd Qty. Consumed in dutiable boiler Closing Balance Remarks 1 Electric Motor 9 8 12 5 2 Pressure Switchers- Motors-MCBs 34 115 65 84 3 C....