Proportionate CENVAT Reversal Treated as Separate Records; Full Credit Demand Set Aside: CESTAT Mumbai

Castrol India Ltd. Vs Commissioner of CE & ST (CESTAT Mumbai) Proportionate reversal of CENVAT credit amounts to maintenance of separate records under Rule 6; demand for reversal of total credit set aside: CESTAT Mumbai The appellant is a leading manufacturer of lubricants. It is also engaged in trading of similar products. It availed cenvat credit on inputs under Rule 3(1) of the Cenvat Credit Rules. It reversed pro rata credit relating to trading under Rule 6(3) of the said rules. However; the Department was of the view that it should reverse “total cenvat credit” in terms of formula...