9911796707
TMI Blog2007 (7) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed before the inputs were put into process for production of exempted goods - Held that: - the case of the assessee was squarely covered by circular issued by the Central Board of Excise and Customs No. 231/66/96/ES dated 25-7-1996 wherein the Board had clarified that the credit of the duty paid on the common input is admissible when used in the manufacture of the final product once the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, it did not maintain separate inventory regarding receipt of utilisation of inputs used for the exempted category and they also did not pay in amount of 8% of the value of such exempted goods as per Rule 57CC. 3. On 21-1-2002, show cause notice was issued by the Commissioner of Central Excise & Customs, Aurangabad, and after hearing the assessee, the notice was confirmed on 22-8-2002. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of exempted product, they had reversed the credit. In fact, even the Assessing Officer has observed in his order as follows : "When inputs are required for manufacture of exempted product, the assessee is issuing self invoice clearing the inputs to self by reversing the credit availed under Rule 57F(3) of Central Excise Rules, 1944, [now new Rule 3(4) of Cenvat Credit Rules, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he final product once the said credit on duty paid inputs going into the exempted category of the final product is debited in the RG 23A Part II account before removal of the exempted final product on actual or pro rata basis. From the narration of facts in the order of the Assessing Officer, it is evident that the credit was reversed and the input was deducted from RG 23A Part II at the stage whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the exempted category of the final product is debited in the RG 23A -Part II account before the removal of exempted final product on actual or pro rata (estimated) basis." 7. We are unable to find any fault with the observations of learned Members of CESTAT for which they were inclined to allow the appeal of the assessee. No substantial question of law arises now for our consideration. The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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