https://www.taxtmi.com/caselaws?id=51854 Cenvat credit on common inputs remained admissible where a manufacturer produced both dutiable and exempted watches in the same business activity and did not maintain separate accounts. Rule 57AD(1) barred credit only for inputs used exclusively in exempted goods, while Rule 57AD(2) applied to mixed manufacture and restricted credit only to inputs intended for dutiable goods; if separate accounts were not maintained, the rule contemplated payment linked to exempted clearances. The exemption for certain watches did not require day-to-day simultaneous production of both categories. On the stated record, the manufacturer continued both lines of production, so credit was not disallowable and the demand could not stand. en-us Wed, 12 Mar 2003 00:00:00 +0530 Tue, 28 Sep 2010 18:33:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=51854 Cenvat credit on common inputs remained admissible where a manufacturer produced both dutiable and exempted watches in the same business activity and did not maintain separate accounts. Rule 57AD(1) barred credit only for inputs used exclusively in exempted goods, while Rule 57AD(2) applied to mixed manufacture and restricted credit only to inputs intended for dutiable goods; if separate accounts were not maintained, the rule contemplated payment linked to exempted clearances. The exemption for certain watches did not require day-to-day simultaneous production of both categories. On the stated record, the manufacturer continued both lines of production, so credit was not disallowable and the demand could not stand. Case-Laws Central Excise Wed, 12 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=51854