AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 570
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....r and tower parts on their behalf. On which the appellant are exempted from the payment of duty under Notification No. 12/12-CE dated 17.03.2012 and its previous Notification. The appellant used to avail cenvat credit on various other inputs/input services used in common by them including on Zinc Fuel Consumable which were used in common by them in their factory in production of dutiable and exempted goods. The appellant also avails the credit on various inputs received on behalf of M/s SEL. The case of the department is that since, the appellant have availed cenvat credit on certain inputs which were used exclusively in the manufacture of exempted goods manufactured on job work basis, the appellant is not entitled for cenvat credit on the ....
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....id 6% / 8% of the value of exempted goods. He submits that once an amount of 6% / 8% under Rule 6(3)(i) has been paid then no further demand of cenvat credit can be made. He submits that the impugned order confirms the demand of credit as opposed to the 6% / 8% amount already paid solely on the basis of some statement of appellant's employees regarding storage of Suzlon related goods in factory, invokes Rule 6(1) & (2) of the cenvat credit Rules, 2004 to deny the credit of duty paid on inputs received on behalf of M/s SEL by the appellant. There is no dispute that common inputs were used for duty paid exempted goods, therefore, the contention of the impugned order that the inputs can also be separately used and accounted is no ground to for....
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....y same controversy though raised in the past was investigated and concluded without raising any demand as evident from the record. The revenue authorities had raised series of demands from time to time and majority of the material period is already covered vide the same wherein while 6% or 8% payment methodological was approved, however it was alleged that the value adopted for payment of 6% / 8% was undervalued. These proceeding were also recently concluded in favour of the appellant vide CESTAT Final Order No. A/10059-10066/2019 dated 10.01.2019. He submits that under the circumstances, the Revenue authorities cannot keep taking different stand simultaneously i.e. one for valuation under 6% / 8% option exercised by the appellant under Rul....
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.... it cannot be said that the goods manufactured and cleared under exemption were manufactured from all the inputs which were used exclusively in such exempted goods. The Revenue authorities confirmed the demand invoking Rule 6(1) which reads as under: "6. Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services.- (1) The CENVAT credit shall not be allowed on such quantity of input or input service which is used in the manufacture of exempted goods or exempted services, except in the circumstances mentioned in sub-rule (2). Provided that the CENVAT credit on inputs shall not be denied to job worker referred to in rule 12AA of the Central Excise Rules, 2002, on the ground that the said inputs ....
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....uivalent to the CENVAT credit attributable to inputs and input services used in, or in relation to, the manufacture of exempted goods or for provision of exempted services subject to the conditions and procedure specified in sub-rule (3A). Explanation I.- If the manufacturer of goods or the provider of output service, avails any of the option under this sub-rule, he shall exercise such option for all exempted goods manufactured by him, or as the case may be, all exempted services provided by him, and such option shall not be withdrawn during the remaining part of the financial year. Explanation II.- For removal of doubt, it is hereby clarified that the credit shall not be allowed on inputs and input services used exclusively for the man....
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....ed goods is manufactured wholly from the inputs which are exclusively used in the manufacture of such exempted goods. However, in the present case some of the inputs are common which were used in the manufacture of dutiable final product as well as exempted goods, therefore, the explanation II is not applicable in the present case. Moreover, the explanation II is applicable only with reference to Rule 6(2), however the appellant have not opted for said Rule and they have opted for sub Rule (3) of Rule 6 wherein unambiguous provision for payment of 6% / 8% of the value of exempted goods is provided. 8. Without prejudice to our above observation, even if the contention of the Revenue is accepted then also the demand of cenvat credit in the p....