2002 (9) TMI 755

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..... Negi, SDR, for the Respondent. [Order per : S.S. Kang, Member (J)]. - Heard both the sides. 2. The Appellants had filed this appeal against the Adjudication Order passed by the Commissioner of Central Excise. The Appellants are engaged in the manufacture of cement and clinker and were availing the Modvat credit in respect of explosives used in their mines. A show cause notice was issued....

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....cturer has to reverse the Credit taken on the inputs used in the manufacturer of exempted goods. The Appellants also relied upon the Larger Bench decision of the Tribunal in the case of Indian Iron & Steel Co. [2002 (143) E.L.T. 442 (Tri.) = 2002 (51) RLT 154] wherein the Tribunal after relying upon the above mentioned Circular remanded the matter to the Adjudicating Authority for deciding the mat....

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....l not be allowed on such quantity of inputs which is used in the manufacture of exempted goods, except in circumstances specified in sub-rule (2). The provisions of sub-rules (2) and (3) of Rule 6 provide as to how to deal with an account for the inputs and credit of duty in cases where the inputs are used in manufacture of both dutiable as well as exempt products. It follows from the provisions t....