9911796707
TMI Blog2008 (2) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... records and hearing both sides, I am of the view that the appeal itself requires to be disposed of finally at this stage. Accordingly, after dispensing with pre-deposit, I take up the appeal. 2. The appellants are engaged hi the manufacture of P or P medicaments falling under Heading 30.03 of the Schedule to the Central Excise Tariff Act. These products include Pyrazinamide I.P. and Isoniazid I.P., both of which are unconditionally exempted from payment of duty. Originally, the appellants were availing SSI exemption. They crossed SSI limit during the course of 2003-04 and, thereupon, started availing Cenvat credit. The department, after verification of records, found that the appellants, after crossing SSI limit, availed Cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals) found that the Cenvat credit in question had already been reversed and interest thereon paid by the party. These amounts were appropriated towards the demand confirmed by the lower authority. The appeal is against the appellate Commissioner's order. 3. It is submitted by learned Counsel for the appellants that Rule 6(2) of the Cenvat Credit Rules is not applicable to the present case inasmuch as the inputs in question were used exclusively in the manufacture of the two exempted products and were not common inputs between such products and dutiable final products. Even otherwise, learned Counsel submits, the entire credit having been reversed with interest, it is not open to the department to enforce the demand under Rule 6(3)(b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xempted and dutiable final products, it narrows down to the position that they had availed Cenvat credit on common inputs used in the manufacture of Pyrazinamide I.P. and Isoniazid I.P., both of which were admittedly exempted final products. These inputs have already been specified earlier in this order. It appears that, as the inputs were used exclusively in the manufacture of exempted final products and have not been shown to have been used in the manufacture of any of the dutiable final products, Rule 6(2) of the Cenvat Credit Rules was wrongly invoked in this case and consequently the demand raised under Rule 6 (3) cannot be sustained. On the above facts, the applicable provision is Rule 6 (1), which mandates that, where the final produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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