V.S.T. TILLERS AND TRACTORS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE
LAWS(CE)-2015-1-3
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on January 01,2015

V.S.T. Tillers And Tractors Ltd. Appellant
VERSUS
COMMISSIONER OF CENTRAL EXCISE Respondents

JUDGEMENT

Archana Wadhwa, Member (J) - (1.)AFTER dispensing with the condition of pre -deposits in all the cases, we proceed to decide the appeals itself inasmuch as a short issue is involved.
(2.)THE appellants are engaged in the manufacture of dutiable as well as exempted final products. In respect of inputs used in both the types of excisable goods, they were admittedly maintaining separate accounts and there is no dispute about the same. However in respect of common input services, as it was not possible to maintain the separate accounts, they were reversing the proportionate credit taken on the common input services, which were relatable to exempted goods.
Proceedings were initiated against the appellant for confirmation of demand at the rate of 5/8/10% of the value of the exempted final products, in terms of the provisions of Rule 6(3) of the Cenvat Credit Rules besides demands, which were raised vide different show -cause notices and stand confirmed by the lower authorities primarily on the ground that the provisions of Rule 6 do not provide for simultaneous maintenance of separate accounts for inputs and a common cenvatable account for input services.

(3.)THE contention of the appellant is that there is nothing in the said Rule to debar following of such a procedure. Inasmuch as it was feasible for them to maintain separate accounts for inputs, they have done so and as it was not practical to maintain separate accounts in respect of input services, they have reversed the proportionate credit of service tax availed on the common cenvatable services.
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