Court Rules CENVAT Credit Demands Invalid Due to Lack of Legal Basis u/r 14 of Cenvat Credit Rules, 2004.

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....CENVAT Credit - manufacture of dutiable as well as exempted products - The SCNs in these appeals were issued proposing to recover under Rule 14 of CCR an amount to fulfill obligations under Rule 6(3). A plain reading of Rule 14 shows that it does not empower the Revenue to compel the manufacturer to maintain separate accounts or to pay an amount equal to 10% of the value of the exempted goods. - The demands in the show cause notices under Rule 14 of the Cenvat Credit Rules, 2004 of an amount equal to 10% of the value of exempted goods Rule 6 (3) are not sustainable in law at all and, therefore, none of the demands could have been confirmed as the lack any legal basis. - AT....