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TMI Blog2005 (8) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... r : S.S. Sekhon, Member (T)]. Respondents, an assessee under the Central Excise Act avail Modvat credit and discharges duties on medicaments/pharmaceuticals etc. They were issued notices seeking to disallow credit availed wrongly during the period May 98 in contravention of Rule 57CC. 1.2 The respondents availed credit of duty on inputs and obtained an intermediate product Strepto Penicill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of duty. During the manufacture of the said pharmaceutical products two intermediate products namely (1) Fortified Procaine Penicillin and (2) Benzyl Penicillin emerged as inputs which again were used in the manufacture of injections and formulations. The above mentioned observation is not factually correct. In fact these two products are finished products in this case. The assessee in their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he wording of Rule 57CC that this rule is applicable only in such cases where any manufacturer is manufacturing two or more products and using raw material for these products. If he is using same raw material in two different products, one of which is dutiable and another is exempted then only this rule is applicable. The wordings of Rule 57CC made it amply clear that for application of this rule, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifferent products but using for only one product (the very same goods). Since Rule 57CC is not applicable in such situation; the order of Commissioner (A) allowing the credit does not appear legal and proper. 2.1 After considering the submission, we cannot accept the proposition that the Intermediate Strepto Penicillin is not being used for two different products viz. Branded fortified Penicill ..... X X X X Extracts X X X X X X X X Extracts X X X X
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