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TMI Blog2015 (1) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... se of demand of excise duty. No illegality or perversity could be shown by the learned counsel for the appellant in the approach of the Tribunal. Furthermore, under Rule 6 of the Rules, the assessee is not entitled to claim Cenvat Credit on such quantity of input used in the manufacture of exempted goods. However, under sub-rule (2) thereof, the assessee can bifurcate the claim between manufacture of dutiable goods and exempted goods, where the manufacturer is required to maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of dutiable final products and the quantity of inputs meant for use in the manufacture of exempted goods and take Cenvat Credit only on that quantity of inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ex Court which is squarely in favour of the appellants? (iv) Whether in facts and circumstances of present case, the Hon'ble Tribunal is correct when the law is settled that the manufacturer would be eligible to claim Modvat credit on the bought out items as long as the manufacturer is discharging excise duty on consolidated value of manufactured items as well as bought out items? (v) Whether in facts and circumstances of present case, the Hon'ble Tribunal is correct when the appellants have paid excise duty much in excess of the duty that was required to be paid as per excise department? 2. Brief facts as narrated in the appeal for adjudication of present controversy may be noticed. The appellant is engaged in the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty paid on the CJK and set aside the interest and penalty imposed on the appellant. Aggrieved by the order, the revenue filed an appeal before the Tribunal. The appellant also filed cross-objections. Vide order, dated 1-7-2011, Annexure A-9, both the members of the Tribunal allowed the appeal and disposed of the cross objections and held that adjustment of Cenvat Credit on the bought-out items supplied with the CJK was wrong and a wrong cannot be remedied by another wrong. Hence this appeal by the assessee. 3. Learned counsel for the appellant did not dispute that the process of packing of bought out items and manufactured items undertaken by the appellant to make CJK did not amount to manufacture. He, however, submitted that the manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut used in the manufacture of exempted goods. However, under sub-rule (2) thereof, the assessee can bifurcate the claim between manufacture of dutiable goods and exempted goods, where the manufacturer is required to maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of dutiable final products and the quantity of inputs meant for use in the manufacture of exempted goods and take Cenvat Credit only on that quantity of inputs which is intended for use in the manufacture of dutiable goods. 5. Adverting to Sidhartha Tubes Limited's case (supra) on which heavy reliance has been placed by learned counsel for the appellant, the Apex Court was dealing with the issue whether galvanisati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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