9911796707
TMI Blog2006 (5) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... been disputed that the applicant was required to maintain separate inventory and accounts of the receipt and use of inputs as contemplated by sub-rule (9) of Rule 57-CC. Under Rule 57-CC, unless the provisions of sub-rule (9) are complied with, the assessee was liable to pay an amount equal to 8% of the price (excluding sales tax and other taxes, if any, payable on such goods) of the category of final products which are exempt from the whole of the duty as contemplated by sub-rule (1) of Rule 57-CC of the Central Excise Rules, 1944. 3. The learned counsel, appearing for the applicant, contended that the applicant had reversed the amount of credit, which was about Rs. 2 lacs, after the final products were removed. According to him, the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d there is no provision dealing with any reversal of credit : In respect of inputs (other than inputs used as fuel) which are used in or in relation to the manufacture of any goods, which are exempt from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty, the manufacturer shall maintain separate inventory and accounts of the receipt and use of inputs for the aforesaid purpose and shall not take credit of the specified duty paid on such inputs . It is clear from sub-rule (9) of Rule 57CC that, it is obligatory on the manufacturer to maintain separate inventory and accounts of the receipt and use of inputs, and that no credit can be taken of the specified duty paid on such inputs. Admittedly, there has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis by the Hon ble Supreme Court was on debiting the amount in the credit (i.e reversal of credit) only if that was done before the removal of the exempted final products. If after the removal of final products, whenever the breach of sub-rule (9) is detected, the assessee is allowed to reverse the credit that will mock at the provisions of rule 57CC. It appears to us that, in the decisions on which reliance is placed by the learned counsel for the applicant, the last sentence of paragraph 6 of the Hon ble Supreme Court s judgment, which lays emphasis on the aspect of reversal of credit that would be permissible only if it is done before the removal of exempted final products, have been over looked. 7. The learned counsel for the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
