TaxTMI 
TaxTMI 
2026 (4) TMI 1070
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.... 2. Briefly stated the facts of the case are that the appellant are engaged in the manufacture of electronic assemblies like Populated Printed Circuit Boards (PCB) Assemblies, sub-assemblies and solar products falling under Chapter heading 8502 and 8534 of Central Excise Tariff Act, 1985. They availed cenvat credit on inputs and input services. Also, they are engaged in the manufacture of solar energy equipments and parts of windmill which they had cleared to M/s. Duron Energy Ltd., Bangalore and to M/s. Wind World Pvt. Ltd., Bangalore claiming exemption under Notification No.6/2006 dated 01.03.2006 and No.12/2012 dated 17.03.2012 respectively and also parts of defence equipments to M/s. BEL, Chennai and M/s. Navl Physical and Oceanograph....
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....r manufacture of any other final products. For the purpose of identification of the manufacturer of components during the storage, these parts / components are marked with part numbers with stickers affixed and separate inventory is maintained. However, once these parts or components issued for production, consumption of such parts or components cannot be monitored as the stickers marked with part numbers are removed in the production area and there is a high possibility that parts / components meant for one specific project of exempted goods are used in another ongoing project of dutiable goods. It is his contention that the said position has been stated by Shri Sajan Anandaraman, Assistant Manager during his statement dated 01.10.2015. Si....
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....he period on the value of the exempted goods in terms of Rule 6(3)(i) of CCR 2004 and the same has been duly declared in their ER1 returns throughout the period of dispute. They were under a bona fide belief that once they could not able to maintain separate records for receipt and consumption of the inputs, an amount of 5% / 6% is payable under Rule 6(3)(i) of CCR, 2004. He has submitted that the unit has been periodically audited by the Department and at no point of time, it has been pointed out by the audit team that the procedure followed by the appellant in discharging 5% / 6% of the value of the exempted goods in terms of Rule 6(3)(i) is incorrect; therefore, the demand confirmed invoking extended period of limitation is bad in law. I....
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....producer of final products and a provider of output service. - (1) The CENVAT credit shall not be allowed on such quantity of (input used in or in relation to the manufacture of exempted goods or for provision of exempted services, or input service used in or in relation to the manufacture of exempted goods and their clearance upto the place of removal or for provision of exempted services), except in the circumstances mentioned in sub-rule (2) Provided that the CENVAT credit on inputs shall not be denied to job worker referred to in rule 12AA of the Central Excise Rules, 2002, on the ground that the said inputs are used in the manufacture of goods cleared without payment of duty under the provisions of that rule. ....
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.... not to maintain separate accounts, shall follow any one of the following options, as applicable to him, namely (i) pay an amount equal to six per cent of value of the exempted goods and exempted services, or (ii) pay an amount as determined under sub-rule (3A), or (iii) maintain separate accounts for the receipt, consumption and inventory of inputs as provided for in clause (a) of sub-rule (2), take CENVAT credit only on inputs under sub-clauses (ii) and (iv) of said clause (a) and pay an amount as determined under sub-rule (3A) in respect of input services. The provisions of sub-clauses (i) and (ii) of clause (b) and sub-clauses (i) and (ii) of clause (c) of sub-rule (3A) shall not apply for such payment. ....