https://www.taxtmi.com/caselaws?id=123483 Where a manufacturer avails Cenvat/Modvat credit and produces both dutiable and exempted final products, Rule 57AD(2) is satisfied if separate accounts are maintained for receipt, consumption and inventory of inputs on an actuals basis and credit is confined to inputs used for dutiable goods. On those facts, the 8% amount linked to the sale price of exempted goods is not attracted, and the penalty cannot stand. The record showed compliance with the separate-account requirement, so the demand on exempted castings and the penalty were held unsustainable and set aside in favour of the assessee. en-us Tue, 22 Apr 2008 00:00:00 +0530 Fri, 14 Sep 2012 15:02:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=123483 Where a manufacturer avails Cenvat/Modvat credit and produces both dutiable and exempted final products, Rule 57AD(2) is satisfied if separate accounts are maintained for receipt, consumption and inventory of inputs on an actuals basis and credit is confined to inputs used for dutiable goods. On those facts, the 8% amount linked to the sale price of exempted goods is not attracted, and the penalty cannot stand. The record showed compliance with the separate-account requirement, so the demand on exempted castings and the penalty were held unsustainable and set aside in favour of the assessee. Case-Laws Central Excise Tue, 22 Apr 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=123483