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TMI Blog2014 (2) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... goods and the goods on which duty has to be paid. credit account under MODVAT rules may be maintained chapter wise, MODVAT credit is not available if the final products are exempt or are chargeable to nil rate of duty. However, where a manufacturer produces along with dutiable final products, final products which would be exempt from duty by a notification (e.g. an end use notification) and in respect of which it is not reasonably possible to segregate the inputs, the manufacturer may be allowed to take credit of duty paid on all inputs used in the manufacture of the final products, provided that credit of duty paid on the inputs used in such exempted products is debited in the credit account before the removal of such exempted final pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under Notification No. 30/2004-CE and were duly reflecting the same in the monthly returns filed by the Respondent with the Revenue. 2. Shri J. Nagori (AR) appearing on behalf of the Revenue reiterated the grounds of appeal and emphasised that as per the judgments of Hon'ble Supreme Court in the case of M/s. Novapan India Limited [1994 (73) ELT 769 (SC)] and M/s. Rajasthan Spinning Weaving Mills Limited vs. CCE [1995 (77) ELT 474 (SC)] admissibility of an exemption should be construed strictly and in the case of any ambiguity or doubt the benefit of doubt should be given to the Revenue. That adjudicating authority, by giving a liberal interpretation of Notification No. 30/2004-CE, has gone beyond the scope of the exemption notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty has to be paid. But our attention was drawn to a departmental circular letter on this problem in which it has been clarified by the Ministry of Finance as under :- 3. The credit account under MODVAT rules may be maintained chapter wise, MODVAT credit is not available if the final products are exempt or are chargeable to nil rate of duty. However, where a manufacturer produces along with dutiable final products, final products which would be exempt from duty by a notification (e.g. an end use notification) and in respect of which it is not reasonably possible to segregate the inputs, the manufacturer may be allowed to take credit of duty paid on all inputs used in the manufacture of the final products, provided that credit of duty pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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