9911796707
TMI Blog2003 (1) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... um pentoxide is used in respect of which they avail of MODVAT credit under Rule 57A of the Central Excise Rules, 1944; that Sulphuric acid is cleared by them on payment of duty and also at Nil rate of duty; that three show cause notices were issued to them for demanding payment @ 8% of the price of the Sulphuric Acid cleared without payment of duty for the period from March, 1998 to August, 1999 in terms of Rule 57CC; that the Assistant Commissioner, under the Order-in-Original No. 40-42/99 dated 3.12.1999, confirmed the demand which has also been upheld by the Commissioner (Appeals), under the impugned Order. The learned Counsel mentioned that the following quantity of input was received and used in process during the period in question. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is dutiable as also exempt is Sulphuric Acid; that since there is no 'other final product', Rule 57 C.C. (1) has no application; that the manufacture of more than one final product is necessary is apparent from the Provisions of sub-rule (2) of Rule 57C which provides that manufacturer is engaged in the manufacture of any final product which is chargeable to duty as well as in the manufacture of any other final product which is exempt from the whole of the duty of excise leviable thereon ; that this view is further strengthened by sub-rule (1) of Rule 57 C.C. also which also speaks of any other final product which is exempt from the whole of the duty of excise ; that when Rule 57 C.C. is not applicable, the question of maintaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the final product cleared without payment of duty. 3. Countering the arguments, Shri R.D. Negi, learned Senior Departmental Representative, submitted that since the Appellants had not maintained separate inventory and accounts of the receipt and use of vanadium Pentoxide used in exempted as well as dutiable final products, they have to pay an amount equal to 8% of the price of exempted goods under Rule 57CC(1); that non availment of credit of Vanadium Pentoxide after March, 1998 does not mean that the same is not in use in the manufacture after March, 1998; that there are two types of final products - one is dutiable Sulphuric Acid and the other is exempted Sulphuric Acid; that the decision in the case of Indian Iron Steel Co. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty paid on the inputs utilized in the manufacture of the final exempted product under Rule 57A. We do not find any substance in the submissions of the Revenue that non-availment of credit after March, 1998 does not mean that the input is not used in the manufacture after March, 1998. The provisions of Rule 57CC comes into operation only when the credit of the specified duty on any inputs is taken and the manufacturer does not maintain separate inventory and accounts of the receipt and use of the inputs for the manufacture of exempted as well as dutiable final products. In the present matter as the MODVAT credit has not been taken, it cannot be said that the inputs in respect of which credit was availed of has been used in the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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