Reversal of proportionate Cenvat credit in respect of exempted goods – CESTAT directs readjudication

Allied Instruments Pvt Ltd Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) Adjudicating Authority has confirmed demand of 5%/ 10%, in terms of Rule 6(3) of Cenvat Credit Rules, 2004 on the ground that appellant have initially availed Cenvat credit in respect of common input service used for exempted and dutiable goods and not maintained separate records therefore, the appellant is liable to pay 5%/ 10% amount. We find that on the basis of various judgments, it has now been settled that if the appellant have not availed Cenvat credit in respect of input service used in exempted go...