9911796707
TMI Blog2004 (3) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... rer opting not to maintain separate accounts, shall pay an amount equal to 8% of the total price of the exempted final products. In view of the fact that the appellants had not maintained the separate accounts, they have to pay an amount equal to 8% of the price of the exempted final products. The provisions of Rule 57AD are applicable to the facts of the present matter as the inputs had been used also in the manufacture of exempted products and the separate accounts have not been maintained. Therefore, the respondents are liable to pay an amount equal to 8% of the price. Board's Circular dated 16-10-2001, is not an alternative to Rule 57AD. It only clarifies that further action can be taken under Rule 12 of the Cenvat Credit Rules for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, liable to pay an amount equal to 8% of the total price of the exempted goods; that, however, on appeal, the Commissioner (Appeals), under the impugned order, has set aside the Order-in-Original on the ground that the respondents had deposited the proportionate amount of credit involved in respect of the inputs used in the manufacture of exempted final products. The learned S.D.R., further, submitted that as per the provisions of Rule 57AD(2) of the Central Excise Rules, 1944, a manufacturer is required to maintain the separate accounts if the inputs are used both in the manufacture of dutiable goods and exempted products; that if the manufacturer does not maintain separate accounts, he has to pay an amount equal to 8% of the total price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Rules, 1944, clearly provided that the Cenvat credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods, except in the circumstances mentioned in sub-rule (2). Sub-rule (2) of Rule 57AD provided that where the manufacturer avails of Cenvat credit and manufacture final products, which are chargeable to duty as well as exempted from payment of duty, the manufacturer shall maintain the separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of dutiable final products and the quantity 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 manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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