TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 685
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....ms. The appellant was operating or keeping their cenvat account under Rule 6(2) of Cenvat Credit Rules, maintaining separate accounts of inputs and input services used in dutiable and exempted goods. The officers of the Department visited the appellant on 1.4.2017. During the verification of the goods, it appeared that the appellant had, including other goods, cleared exempted goods viz. HDPE Sprinkler and Drip irrigation System during the period April, 2015 to March, 2016 without payment of duty/amount under Rule 6(3) of Cenvat Credit Rules. Further, it appeared that the appellant is availing cenvat credit on inputs, input services and capital goods. Pursuant to investigation, it appeared that the appellant has not paid amount equivalent t....
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....well as exempted goods, since the option given on 1.07.2014. However, some inputs services, which are used commonly for dutiable as well as exempted goods, could not be maintained separately and in fact, the input services so used in the manufacture of exempted goods are nominal as compared to the dutiable goods. Such common input services used are - internet, telephone, security services, etc. Further, it is difficult to separate such services used for exempted goods. Further, the appellant was under the impression that since these services were mainly used for dutiable goods, there was no need to maintain separate accounts for these services. Further, the appellant on being so advised, reversed the proportionate credit amount with respect....
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.....50110 of 2019 read with Final Order No.51388 of 2018-EX (DB) dated 18.04.2018 in Appeal No.51150 of 2017. Further, so far as the contention of the Revenue is concerned, w.e.f. 1.4.2016, after introduction of the new provisions, all the exempted goods cleared will attract reversal of cenvat credit @ 6%, it is urged, is incorrect. Reversal of cenvat credit gets attracted only on those goods, where input stage credit is availed, after introduction of the new provision w.e.f. 1.4.2016. The goods, which were already manufactured and were lying in stock as on 1.4.2016 will not attract the reversal as prescribed, as such goods were manufactured out of the non-credit availed inputs. It is further submitted that the clearance reflected in the ER-I ....
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....hotocopy. Further, originals were traced in the month of May, 2017 and the reversed credit of Rs. 7,52,318/- was re-availed in May, 2017. The appellant has prayed before the Adjudicating Authority for allowing reversal of their debit with respect to the said amount. Further, prayed for dropping of the penalty. Such facts have been admitted in the order-in-original in para 31.2, but the same were denied observing that the original documents were produced after one year from the date of the credit, hence, not admissible. Accordingly, ld. Counsel prays for allowing their appeal with consequential benefits. 9. Ld. Authorised Representative for the Department has relied upon the impugned order. 10. Having considered the rival contentions, I fi....