2008 (7) TMI 803

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..... Shri S.R. Prasad, SDR, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. -  The appellants have filed this stay petition against the order confirming a demand of Rs.5,36,84,960/- and a penalty of Rs. 54 lakhs imposed. 2. Short issue involved is whether the appellants are required to pay an amount of 10% of the value of the exempted products, namely, IV Fuids in r....

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....respect of the common inputs going into exempted product. As regards the plastic granules, he submits that as soon as the granules are received, an entry is made in RG-23A Part I and the quantity going for use for manufacture of exempted products is recorded separately in Form-IV register after debiting in RG-23A Part I register and after debiting credit taken in respect of the said plastic granul....

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.... quantity from furnace oil which was used in the manufacture of exempted product, they had taken credit of duty paid on the furnace oil received by them in the factory and on the same day debited the duty amount involved on the furnace oil was used for the manufacture of exempted products. On the other hand, learned SDR on behalf of the Revenue submits that Rule 6(2) of Cenvat Credit Rules require....