2003 (12) TMI 547

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.....S. Bhagat, SDR, for the Respondent. [Order]. - The appellants were denied Modvat credit to the tune of Rs. 81,900/- along with imposition of penalty of Rs. 2,000/-. The appellants used various inputs for manufacture of final products, viz. patent and proprietary medicines, some of which are chargeable to nil duty whereas the rest are cleared on payment of duty at the appropriate rate. The a....

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....herefore, they are required to pay 8% of the price of the exempted final products at the point of clearance, or the manufacturer was required to maintain separate inventory and account of the receipts and use of the inputs for the aforesaid purpose. It is further held that the assessees have failed to establish that they have maintained separate accounts. 2. In the appeal memorandum, it ha....