2009 (4) TMI 200

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..... ion. "Whether the CESTAT is right in allowing Modvat credit of duty paid on inputs furnace Oil/LSHS used in the manufacture of exempted final products". 2. The assessee is the manufacturer of both cotton yarn on plain reel hanks and cotton yarn on cones/cheese. The cotton yarn on cones/cheese are cleared on payment of duty and the cotton yarn in plain reel hanks are exempted from the payment o .....

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..... turer shall maintain separate accounts for receipt, consumption and inventory 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." 3. We find that in 2006 (193) E.L.T. 136 (Guj.) = 2006-TIOL-30-HC-AHM-CX (Commissioner of Central Excise Customs v. Gudarat Narmada Ferti .....

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..... ral Excise Rules, 1944 used in both dutiable as well as exempted goods is admissible when neither separate accounts maintained nor 8% of price reversed - Modvat credit availed on furnace oil used in production of own final products as well as for job work articles cleared without payment of duty and without reversing proportionate credit - Rules 57C(2) and 57C(2) ibid showing that Rule 57CC(1) ibi .....

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