2019 (5) TMI 1344

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....ir use in manufacture of dutiable goods or exempted goods, which are exported. 2. Heard both sides and perused the records. 3. The appellant is engaged in the business of manufacturing bulk drugs and bulk drug intermediaries. In the normal course of its business, the appellant manufactures both dutiable and exempted products. For the period up to March 2009, the appellant had not availed CENVAT Credit on inputs used in the manufacture of goods cleared domestically but took credit of goods which were exported only. From April 2009, the appellant started availing the credit on inputs used for dutiable goods cleared to Domestic Tariff Area (DTA) and on exempted goods which were exported. 4. Ld. Counsel for the appellant submits that they....

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....h went into each batch. 5. A show cause notice was issued on the following grounds:- (a) The appellant has not maintained a separate set of books of accounts and hence must reverse 6% of the value of the exempted goods. (b) The amendment vide notification No. 24/2010, dated 26.95.2010 is not applicable to the period in question and hence no credit can be availed on exempted goods which were exported. After following due process, Ld. Commissioner confirmed the demand as proposed. 6. Ld. Counsel would submit that they have not availed CENVAT credit on the common inputs but have availed CENVAT Credit only on the extent to which the inputs have been used for manufacture of dutiable goods or exempted goods which are exported. In thei....

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.... of reversal of input credit does not arise in such a case. He produces copies of the relevant judgments. 7. Ld. DR reiterates the findings of the adjudicating authority. 8. We have considered the arguments on both sides and perused the records. The issues to be decided by us are- (i) Whether the assessee was correct in taking the credit in proportion to the quantity of inputs which were issued for manufacture of dutiable goods or exempted goods for export instead of taking CENVAT credit on the entire invoice amount and then reversing the proportionate amount of credit in respect of exempted goods; (ii) Whether the assessee was correct in taking CENVAT Credit on exempted goods which were exported; (iii) Whether the assessee was....