CENVAT Credit Availed Without Separate Records for Exempted and Dutiable Goods: CESTAT Orders Demand Recomputation

The CESTAT has directed a recomputation of CENVAT credit demand imposed on a taxpayer, emphasizing the crucial requirement of maintaining separate records for goods that are exempted from excise duty and those that are dutiable. The tribunal observed that the assessee had failed to adhere to this fundamental rule, which is essential for accurately determining the eligibility and quantum of CENVAT credit that can be claimed. Consequently, to ensure proper compliance with the excise regulations and to arrive at a correct assessment of the recoverable amount, the CESTAT has mandated a fresh calculation of the CENVAT credit demand based on a proper segregation of records for the different categories of goods.