Payment of 10% of value of exempted goods not enforceable after proportionate reversal of Cenvat Credit

Pr. Commissioner of CGST and Central Appellant Excise Vs Larsen & Toubro Limited (HED) (Bombay High Court) Bombay High Court held that even if the assessee has failed to maintain a separate account it was entitled to reverse proportionate Cenvat Credit. The option of paying an amount equal to 10% of the value of exempted goods could not have been enforced on the assessee. Facts- The controversy in the present appeal revolves around the purport and applicability of Rule 6 of the Cenvat Credit Rules, 2004 under which the duty demand was raised against the respondent. Rule 6 provides for ob...