9911796707
TMI Blog2002 (12) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... t was possible to dispose of the appeal itself as the issue in dispute is covered by earlier orders of the Tribunal in favour of the assessee; hence after waiving the pre-deposit of duty of Rs. 18,10,331/- and penalty of Rs. 4 lakhs, we proceed to decide the appeal itself with the consent of both sides. 2. The appellants herein manufactured HDPE Strips/Tapes falling under sub-heading No. 3920.32 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hough the machines mainly produced labels and badges, the machines were also used for the production of laces falling under Chapter Heading No. 5804.12 which were cleared on payment of appropriate duty and therefore the machines in question were not used exclusively for manufacture of final products on which no duty was payable. 3. On hearing both sides and noting the admitted position that some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Rule and the expression "exclusive" in dictionaries held that, credit was admissible as the capital goods in question were not used exclusively for the production of final product which is exempt from the whole of duty of excise leviable thereof or chargeable to nil rate of duty. In the case of SIEL Sugar v. Commissioner of Central Excise [1998 (99) E.L.T. 54 (Tribunal)] it has been held that c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t by virtue of Notification No. 46/97-C.E.(N.T.), dt. 1-9-1997 provided for denial of credit in the case of capital goods which were used for manufacture of those goods which were exempt from payment of duty. Therefore where a machine produced goods, some of which were dutiable and some of which were exempt, there was scope for doubt whether the machine in that circumstances would qualify for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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