9911796707
TMI Blog2003 (12) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellants were denied Modvat credit to the tune of Rs. 81,900/- along with imposition of penalty of Rs. 2,000/-. The appellants used various inputs for manufacture of final products, viz. patent and proprietary medicines, some of which are chargeable to nil duty whereas the rest are cleared on payment of duty at the appropriate rate. The appellants removed the medicines at nil rate of duty wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the exempted final products at the point of clearance, or the manufacturer was required to maintain separate inventory and account of the receipts and use of the inputs for the aforesaid purpose. It is further held that the assessees have failed to establish that they have maintained separate accounts. 2. In the appeal memorandum, it has been brought out that certain inputs which have been used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished goods, the amount of duty demanded and the penalty imposed in the impugned order cannot be sustained. The Board s Circular No. 591/28/2001-CX., dated 16-10-2001 and the decision of the Tribunal in the case of Rochees Watches Ltd. v. CC, Jaipur - 2003 (152) E.L.T. 420 are referred. 3. The appeal is accordingly allowed and the impugned order of the lower authority set aside. - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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