TaxTMI 
TaxTMI 
2026 (10) TMI 635
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....e biscuits are subjected to valuation as per Section 4A of the Central Excise Act, 1944 wherein Excise Duty is required to be paid based on the Maximum Retail Price (MRP). In terms of Notification No. 03/2006-C.E. dated 01.03.2006, as amended vide Notification No. 12/2012-C.E. dated 17.03.2012, biscuits having MRP of less than Rs.100/- per kg. are fully exempt from payment of Central Excise Duty. 2. On the ground that the appellants were manufacturing both dutiable and exempted goods in their factory premises but had irregularly taken CENVAT Credit of the duty paid on capital goods, inputs and input services, a Show Cause Notice was issued on 03.08.2015 demanding reversal of CENVAT Credit of Rs.72,56,659/- being the credit availed by the....
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....espect of 'inputs', he submitted that the appellant already knows that they are eligible to take the said credit only to the extent used for the manufacture of dutiable finished goods and that accordingly, the appellant has taken only the proportionate CENVAT Credit in this regard. 5.2. It is his submission that the same procedure has been adopted by the appellant in respect of 'input services' also. 5.3. Further, the Ld. Counsel submits that the Annexure-1 to the Show Cause Notice itself clarifies these details. 5.4. Accordingly, the Ld. Counsel for the appellant prays that the appeal be allowed on merits. 6. Alternatively, the appellant also takes the stand that the Show Cause Notice issued on 03.08.2015 for the period from Ju....
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....ENVAT Credit taken by the appellant to the extent of Rs.70,137/- is on account of capital goods alone. As rightly pointed out by the appellant, as per Rule 6(4) of the CENVAT Credit Rules, 2004, CENVAT Credit is not allowable on 'capital goods' when the same are exclusively used in the manufacture of exempted finished goods. In the present case however, admittedly, the appellant has been manufacturing dutiable as well as exempted goods. The Department has failed to come out with any documentary evidence to the effect that the appellant was in fact not manufacturing dutiable goods. Therefore, on this count itself, the demand of Rs.72,24,110/- [Rs.70,13,696/- + Rs.1,40,277/- (Ed. Cess) + Rs.70,137/- (S.H. Ed. Cess)] stands set aside on merits....
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....ppellant in the present case. Accordingly, we set aside the confirmed demand for the extended period, on account of time bar. 11. Thus, the appeal stands allowed. The appellant shall be eligible for consequential reliefs, if any. (Order pronounced in the open court on 08.10.2026) ============= Document 1 Wwestre-1 Cenwat cred; taken en capita Goods Convet credit taker on Input Goods Cersat credit lakan on Input toface Central ( MS) # #: Crisis M.de ces Corta! Tal Cc :: SILLA l'entra" EA Crm S .- Cd ( === ) LAExp Duty In 651 Cen -) F.t3e Duty MEST a F:1 0.55 an Kil 1 Judy-10 1:114024 106235 :1114 2 C 4 7 0 0 0 Stemte+-10 11:66: 2055 1317 0 CA C G O O 24toner-te 507-900 10004 550 C 5 G 0 3 0 Navgra....
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....6255FEM002 2. Assosscc's Name : MANI'S BAKING SOLUTIONS PRIVATE LIM- ITED Return Number : AAD. CM6255FEM002_ER1_0 22015 Status : Filed Address of Registered Unit : PLOT NO. A5, A6,A7 HOWRAH FOOD PARK (SUDHARAS) HOWRAH FOOD PARK (SUDHARAS) JALADHULAGORI PS- SANKRAIL DHULAGORI HOWRAH WEST BENGAL 711302 Commissionerate : KOLKATA-II Division : HOWRAH-IV DIVISION Rango : RANGE-I 3.DETAILS OF THE MANUFACTURE, CLEARANCE AND DUTY PAYABLE DETAILS OF CLEARANCE CETSH No. Description of Goods Unit of Quant- ity Opening Bal- ance Quantity Manufac- turod Quantity Clearod Closing Bal- anco Assessable Value(Rs.) Type Of Clear- anco 19059020 BISCUITS KG 165807 576197 633377 108627 40782083 Home Clear- ance NON TARIFF NOTIFICATION....
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.... 0 0 0 0 0 0 0 sued by | or Il stage dealers (Rs.) Credit Taken on inputs on imported in- 0 0 0 0 0 D 0 D D D puts (Rs.) Credit Taken on Capital Goods on In- 42660 0 0 D D 853 427 0 O 0 voices Issued By Manufacturers Or By I Or Il Stage Dealers(Rs.) Credit Taken on imported capital goods 0 0 0 0 0 0 0 0 0 0 (Rs.) Credit Taken on Input services (Rs.) 0 0 D 0 0 0 0 0 0 0 Credit Taken From Inter-Unit Transfer Of 0 0 D 0 0 0 0 0 0 O It Rules, 2004 Credit Under Rule 10A of CENVAT Cred- Total Credit Available (Rs.) 6799562 0 0 0 0 135995 67997 0 0 ] Credit Utilized For Payment Of Duty On 81043 0 D 0 0 1621 810 0 0 D Goods (RS.) Credit utilized when input goods are re- 0 0 0 0 0 0 0 0 0 O ....