2008 (12) TMI 527 - AT - Central Excise

Summary

Issues involved:
The judgment involves a demand of Rs. 1,46,141/- and a penalty of Rs. 10,000 imposed on M/s. Tamil Nadu Newsprint and Papers Ltd. for using a common input 'Furnace Oil' for manufacturing dutiable and exempted final products without maintaining separate accounts as required under Rule 6(1) of Cenvat Credit Rules, 2004.

Decision on the issue:
The Tribunal allowed the appeal filed by TNPL based on the precedent set in Final Order No. 1372/08 dated 3-12-08, where it was held that the impugned order did not call for any interference as the decisions relied upon by the Revenue did not address the eligibility to CENVAT credit of inputs used as fuel.

Precedents cited:
1. M/s. Amrit Paper v. CCE, Ludhiana, 2006 (200) E.L.T. 365 (S.C.) = 2008 (12) S.T.R. 536 (S.C.) = 2006-TIOL-85-S.C.-CX.
2. Sudarsanam Spinning Mills v. CCE, Thirunelveli, 2006 (195) E.L.T. 290.
3. F.O. No. 1372/08 dated 3-12-08 in CCE v. India Pistons Ltd.
4. Kirloskar Oil Engines Ltd. v. CCE, Pune reported in 1994 (73) E.L.T. 835 (Tri.).

Key points from the judgment:
- The demand was based on the use of a common input for manufacturing both dutiable and exempted products without separate accounts.
- The Tribunal's decision favored the assessee based on the lack of interference required in the impugned order.
- The appeal filed by TNPL was allowed in light of the previous judgment's findings.

Judge's Conclusion:
The Tribunal allowed the appeal filed by TNPL based on the lack of interference required in the impugned order, as per the precedent set in Final Order No. 1372/08 dated 3-12-08.