2009 (3) TMI 1066 - AT - Central Excise

Summary

Issues involved: Examination of whether separate accounts were being maintained by the appellant for dutiable and exempted boilers.

Summary:

Issue 1: Maintenance of separate accounts

The appellant, engaged in manufacturing boilers, claimed to maintain separate accounts for dutiable and exempted products without availing any credit for inputs used in the exempted product. The Assistant Commissioner initially dropped the proceedings after verifying the separate accounts. However, the Revenue appealed before the Commissioner (Appeals) who reversed the decision based on a lack of separate account verification. The Tribunal noted that the Commissioner (Appeals) did not examine the fact of separate account maintenance properly. The Tribunal found that the original adjudicating authority had verified and confirmed the separate accounts, contrary to the Commissioner's observation based on a single instance of credit utilization. The Tribunal set aside the Commissioner's order and remanded the matter for a fresh decision considering the verified separate records.

Outcome:
The Tribunal disposed of the stay petition and appeal accordingly.