TaxTMI 
TaxTMI 
2018 (8) TMI 1440
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....bulk drugs and drug intermediates; some of them are dutiable and some of them are exempted products; avails CENVAT credit facility as per the provisions of CENVAT Credit Rules, 2004 and has devised a method of availment of CENVAT credit on the common inputs by which, they avail the CENVAT credit based upon the consumption of common inputs in the manufacturing activity of dutiable products and utilizes the same for discharge of central excise duty on the final products. After an investigation, the lower authorities issued a show cause notice dated 24.08.2009 demanding an amount equivalent to 8% or 10% value of the exempted goods cleared during the period August, 2004 to December, 2008 on the allegation that appellant had not maintained any s....
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....d in exempted goods. It is his submission that the appellant herein has in fact gone a step ahead and had availed CENVAT credit attributable to those inputs which are used for manufacturing of dutiable goods. He would submit that the issue is no more res integra and is covered by an order of the Tribunal in the case of IPCA Laboratories Ltd [2015-TIOL-1097-CESTATDel.], Gland Pharma Ltd [2016 (343) ELT 502 (Tri.-Bang.)] and Foods Fats & Fertilizers Ltd [2009 (247) ELT 209 (Tri.- Bang.)]. He reads extensively from the aforesaid judgments. 5. Learned Departmental Representative on the other hand would draw our attention to the findings recorded by the adjudicating authority in Appeal No.E/2253/2010. It is his submission that the responsible....
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....rials for the manufacturing of bulk drugs and intermediates, which is required to be done batch wise and the data on such records is the basis on which the appellant had availed CENVAT credit on the inputs consumed for dutiable goods. We find that such data is not disputed by the adjudicating authority. In our view, if assessee is required to maintain meticulous records of the consumption of materials used for manufacturing of bulk drugs and drug intermediates, we do not find any reason to hold that consumption of inputs for the manufacturing of dutiable goods needs to be done in a different way. 8. It is also undisputed that appellant herein had only shown the receipt of common inputs in one raw material register while that issues in th....
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....counts should have been maintained and segregation should have been done at the time of receipt itself, we find that this would not have been possible under the circumstances and there are several decisions taking a view that even subsequent reversal of credit would be sufficient and in this case before the raw materials/inputs were issued for manufacture of exempted goods, credit has been reversed. Once credit has been reversed and raw materials have been taken out for manufacture of exempted goods, in our view the obligation cast on the assessee to maintain separate accounts in respect of inputs for exempted goods can be laid to have been fulfilled. Therefore, it can be said that when the inputs were taken out for manufacture of exempted ....