Demand of 5%/6%/10% on value of exempted clearances unwarranted as proportionate credit reversed

Spac Taopica Products (India) Ltd Vs Commissioner of GST & Central Excise (CESTAT Chennai) CESTAT Chennai held that the demand for paying an amount of 5% /10% /6% on the value of exempted clearances unwarranted when the appellant has reversed the proportionate credit of inputs used in manufacture of exempted products. Facts- The appellants are engaged in manufacture of Tapioca Starch (Native Starch and Modified Starch respectively falling under Chapter 1108 and 3505 of CETA 1985). Based on the intelligence gathered and on a reasonable belief that the appellant has not paid the amount equiv...