https://www.taxtmi.com/caselaws?id=50721 Rule 57CC(9) is explained as requiring compliance with the prescribed inventory and accounting mechanism for inputs used in exempted goods, not physical segregation of inputs into separate premises. The commentary states that maintaining separate accounts and reversing the credit attributable to exempted products through statutory records satisfies the rule. On that reasoning, a demand and penalty based on the absence of physical segregation are said to be unsustainable, because proper record-based reversal and accounting meet the separate inventory and accounts requirement. en-us Fri, 31 Aug 2001 00:00:00 +0530 Wed, 25 Aug 2010 15:54:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=50721 Rule 57CC(9) is explained as requiring compliance with the prescribed inventory and accounting mechanism for inputs used in exempted goods, not physical segregation of inputs into separate premises. The commentary states that maintaining separate accounts and reversing the credit attributable to exempted products through statutory records satisfies the rule. On that reasoning, a demand and penalty based on the absence of physical segregation are said to be unsustainable, because proper record-based reversal and accounting meet the separate inventory and accounts requirement. Case-Laws Central Excise Fri, 31 Aug 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=50721