2004 (8) TMI 216

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..... ctors (below 1800 CC) are exempt from Central Excise duty. The appellant manufactured both dutiable and exempt varieties by using inputs on which Modvat credit was taken. They paid 8% of the value of the exempted tractors, at the time of their clearance, on the ground that they were taking Modvat credit in respect of engines used in those tractors also. This was in terms of Rule 57CC. Under the im .....

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..... ors could not be treated as a "common input" for dutiable and exempted tractors. 3. We have perused the records and considered the submissions made by both sides. It is well settled that denial of Modvat credit as well as levy at 8% on the finished exempted product is not permissible in law. The appellants have been paying 8% of the price of the exempted goods at the time of their clearance. In .....

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