2023 (1) TMI 1046

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., 1985. 1.1 The appellant are also availing the benefit of exemption Notification in respect of their product, namely, Insuman, Lantus (Notification No. 06/03 dated 01.03.2003 as amended), Campto Injection and Granocyte Injection (Notification No. 55/02 dated 07.11.2002). 1.2 They are clearing the goods, namely, Vaxem HIB at nil rate of duty. The appellant started availing cenvat credit on various input services from March 2005. The case of the department is that since the appellant are availing the cenvat credit in respect of common input services, they are liable to pay 10% of the value of exempted goods or goods attracted nil rate of duty in terms of Rule 6(3) of the Cenvat Credit Rules 2004. 2. Shri Jigar Shah, learned Counsel ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... • Bombay Minerals Ltd. 2019 (29) GSTL 361 (Tri.Amd.) • Tiara Advertising 2019 (30) GSTL474 • Chandrapur Magnet Wires 1996 (81) ELT 3 (SC) • Jai Balaji Industries Ltd. 2017 (352) ELT 86 (Tri. Del.) affirmed by Hon'ble High Court 2017 (356) ELT A48 and Hon'ble Supreme Court 2018 (360) ELT A121 (SC) • CCE vs Amritlal Chemaux Ltd. 2015 (5) TMI 700 (SC) • Beri Mercurio 2018 (11) TMI 737 • Johnson & Johnson Ltd. 2003 (156) ELT 134 affirmed by Hon'ble Supreme Court 2005 (188) ELT 467 2.2 Shri Jigar Shah also submits that the appellant as per the provision is required to reverse the proportionate credit attributed to the exempted goods. As against the proportio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... all the common input service used in or in relation to manufacture of dutiable and exempted goods. However, the appellant has argued that since they were liable to reverse the proportionate credit, the amount over and above the proportionate credit may be adjusted against the interest liability, if any, arises. We find that adjudicating authority straight away demanded 10% of the value of exempted goods. Therefore, he neither examined the reversal of cenvat credit made by the appellant nor even calculated the proportionate credit. The submission of the appellant also needs to be reconsidered whether the excess amount can be adjusted against the interest. 5. We are of the view that on the above observation, the matter needs to be reconsi....