2024 (9) TMI 382

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...., Chartered Accountant for the appellant Shri Mahesh Yashwant Patil, Joint Commissioner (AR) for the respondent ORDER M/s Ciron Drugs & Pharmaceuticals Pvt Ltd was proceeded against for recovery of Rs. 4,49,13,262 attributable to non-entitled CENVAT credit by non-maintenance of separate accounts of 'inputs' and 'input services' used for manufacturing of 'exempted goods' and rendering of '....

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....T Credit Rules, 2004, reversal to the extent prescribed in rule 6(3) is mandated. He further relied upon certain judgments to conclude that the proposal in the show cause notice was appropriate and that the extended period could be invoked. Consequently, he confirmed the demand under section 11A of Central Excise Act, 1944, along with applicable interest under section 11AA of Central Excise Act, 1....

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....that in their own earlier dispute, the Tribunal, in Commissioner of Central Excise, Thane - II v. Ciron Drugs & Pharma P Ltd [2016-TIOL-1415-CESTAT-MUM], had accepted the plea of proportionate credit reversal as sufficient compliance of rule 6(3) of CENVAT Credit Rules, 2004. 5. It is now settled law that reversal of credit proportionate to that borne by the value of 'exempted goods' and/or 'ex....