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TMI Blog2004 (3) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... rwal, CA Order V.K. Agrawal, Member (T) 1. The issue involved in this appeal, filed by the Revenue, is whether M/s. Maa Kamakhya Marbles (P) Ltd. were liable to pay an amount equal to 8% of the value of exempted products in the manufacture of which modvatable inputs were used. 2. Mrs. Charul Barnwal, learned SDR, submitted that the respondents manufacture marble slabs and sand stone slabs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 equ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee would not be allowed credit on such quantity, which is used for the manufacture of exempted goods and the recovery of such credit taken incorrectly is squarely covered by the provisions of Rule 12; that they have reversed the Cenvat credit proportionately in respect of inputs used in exempted products. The question of charging 8% of the price of the exempted products, does not arise. He als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eipt, 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 manufacture of dutiable goods. It is not in dispute that the inputs in respect of which Cenvat credit has been taken by the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 reversing the Modvat credit. The machinery for realisation of the 8% amount is enhanced in Rule 57AD (2)(b) of the Central Excise Rules, 1944 itself. We, therefore, hold that the respondents are liable to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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