2009 (4) TMI 699 - AT - Central Excise

Summary

Issues:
1. Appeal against demand confirmed under Rule 57AD (2)(b) of Central Excise Rules, 1944 for availing credit on common inputs used in manufacturing dutiable and exempted goods.
2. Contention regarding no credit availed for inputs used in exempted goods.
3. Lack of evidence to support the claim of not availing credit for inputs in exempted goods.

Analysis:

1. The Appellants filed an Appeal against the demand confirmed under Rule 57AD (2)(b) of Central Excise Rules, 1944, for availing credit on common inputs used in manufacturing both dutiable and exempted goods. The Revenue's case was based on the Appellants availing credit for common inputs used in both types of goods, leading to a demand for duty payment at 8% of the value of exempted goods.

2. The Appellants contended that they did not avail credit for inputs used in manufacturing exempted goods, as these inputs were procured from the open market. They mentioned that in a previous communication with the Revenue, they clarified that no credit was taken for inputs used in exempted goods. However, the Revenue argued that the Appellants failed to provide evidence supporting their claim of not availing credit for inputs in exempted goods.

3. The key issue revolved around the lack of evidence presented by the Appellants to substantiate their claim of not availing credit for inputs used in manufacturing exempted goods. Despite the Appellants' assertion and the inability to produce records supporting their stance, the Tribunal found no merit in their contention. The Tribunal emphasized the Appellants' duty to maintain separate records in this regard, and in the absence of such documentation, the Appeal was dismissed, and the Cross Objection filed by the Revenue was also disposed of accordingly.