2019 (4) TMI 14

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....cture of Water Filtration Equipment and clearing the same on payment of duty. The appellant is also engaged in the manufacture of Reverse Osmosis System which are cleared by claiming exemption under Notification No.12/2012-CE dated 17.3.2012. During the course of scrutiny of their ER-1 returns, it is observed that they are availing CENVAT credit on inputs/input services and utilizing the same for payment of duty. They are clearing Water Filtration Equipment falling under CETH 84212190. They are also clearing the Reverse Osmosis System under same Chapter heading without payment of duty by availing the benefits of exemption vide Notification No.12/2012 as amended. Since they are manufacturing both taxable and exempted goods and availing CENVA....

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....ants have reversed proportionate credit and hence, the question of payment of 6% of the value of exempted goods does not arise. The amount of credit reversed by the appellant is more than the proportionate credit reversible and consequently, the appellant has complied with the provisions of Rule 6 of CENVAT Credit Rules, 2004. He also submitted that appellant having reversed the proportionate credit before its utilization, the question of payment of interest and penalty does not arise. 5. On the other hand, the learned AR reiterated the findings of the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record, I find that the appellants have in fact maintained the separate records i....