9911796707
TMI Blog2008 (7) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent. [Order per : B.S.V. Murthy, Member (T)]. The appellants have filed this stay petition against the order confirming a demand of Rs.5,36,84,960/- and a penalty of Rs. 54 lakhs imposed. 2. Short issue involved is whether the appellants are required to pay an amount of 10% of the value of the exempted products, namely, IV Fuids in respect of common inputs of plastic granules, and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regards the plastic granules, he submits that as soon as the granules are received, an entry is made in RG-23A Part I and the quantity going for use for manufacture of exempted products is recorded separately in Form-IV register after debiting in RG-23A Part I register and after debiting credit taken in respect of the said plastic granules from Cenvat credit account. They have not taken credit on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct, they had taken credit of duty paid on the furnace oil received by them in the factory and on the same day debited the duty amount involved on the furnace oil was used for the manufacture of exempted products. On the other hand, learned SDR on behalf of the Revenue submits that Rule 6(2) of Cenvat Credit Rules requires that assessee is required to maintain separate account in respect of input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th provisions of Rule 6(2) of Cenvat Credit Rules and in the absence of specific procedure prescribed by the Board, it is for assessee to choose the proper method. What is to be ensured is that the credit is not taken in respect of inputs which go for the exempted products. Therefore, we feel that prima facie the assessee has a strong case and therefore, the stay has to be allowed and therefore, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
