2004 (11) TMI 443

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..... per : S.S. Kang, Vice-President]. Common issue is involved in these appeals, therefore, they are being taken up together. 2. Brief facts of the case are that the respondents are engaged in the manufacture of excisable as well as exempted goods. The respondents are availing the benefit of Modvat credit in respect of duty paid on Residual Furnace Oil which is used to generate steam. The stea .....

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..... the inputs on which credit has availed regarding inputs used in the manufacture of dutiable as well as exempted goods and Revenue relied upon the circular issued by the Board dated 16-10-2001 to submit that where separate record has not been maintained, the manufacturer has to pay 8% of the value of the exempted goods. 6. We find that Rule 6 of Cenvat Credit Rules, 2001 clearly provides that Cen .....

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..... ble final products where manufacturer cannot provide for separate storage and accountal of modvatable inputs going into manufacture of exempted products. Further reading of this Rule provides that inputs used as fuel are excluded from the scope of Rule 57AD(2)(b) of Cenvat Credit Rules. The Rule 57AD(2) applies for other than fuel . In the present case, RFO is used as fuel for generation of the .....

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