Order date – 28 November 2022

Key Factors –

• The Respondent, Anil Products Limited, has reversed the proportionate credit attributed to exempted goods
• The issue involved here is whether the assessee is required to pay 10% in terms of Rule 6(3)(a) of Cenvat Credit Rules, 2004, prevailing at the relevant period January 2006 to March 2006?
• The Tribunal observed that the Adjudicating Authority has taken congnizance of the Tribunal’s remand order which recorded that the issue stand decided by the Larger Bench of the Tribunal in the case of M/s Nicholas Piramal (I) Limited.
• However, the learned Commissioner submitted that observed that controversy involved was similar to the controversy in the case of M/s. Maize Products wherein the Hon’ble High Court of Gujarat has dismissed the department’s appeal. Subsequently, the High Court order dated 14.07.2010 in the case of Maize Products was challenged before the Hon’ble Supreme Court and the Hon’ble Supreme Court vide order dated 20.11.2009 dismissed the Revenue’s appeal.
• In view of the above development, the ruling laid-down in the case of M.s Maize Products will be prevalent over the judgment of M/s Nicholas Piramal (I) Limited passed by Hon’ble Bombay High Court. Moreover, this Tribunal being under the jurisdiction of Hon’ble Gujarat High Court, judgment of M/s. Maize Products is more relevant and binding than any other judgment.
• Hence Revenue’s appeal is dismissed.