TaxTMI 
TaxTMI 
2008 (9) TMI 698
X X X X Extracts X X X X
X X X X Extracts X X X X
....cking different medicine in blister packs does not amount to manufacture; confirmed the demand of an amount of Rs. 1,65,45,396/- in terms of Rule 6(3)(b) of the Cenvat Credit Rules, 2004 along with interest and; imposed equivalent penalty of Rs. 1,65,45,396/-. 2. Heard both the sides and perused the records. 3. The applicants are, inter alia, engaged in the manufacture of different Bulk Drugs and Formulations falling under different sub-headings of Chapters 29 and 30 of the Central Excise Tariff Act, 1985. 4. The Applicants, inter alia, manufacture Rifampicin, Isoniazid, Pyrazinamide and Ethambutol. They import Dapasone BP Tablets and Clofazamine (Lamprene) BP capsules without payment of CVD under Notification No. 4/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t Schedule to the Central Excise Tariff Act, 1985 is relevant for the purpose of this case. Antitubercular Drugs, Antileprotic drugs, Antimalarial drugs Sr. No. Products Chapter Sub-heading (i) Isoniazid 30049051 (ii) Rifampicin 30049052 (iii) Pyrazinamide and ethambutol 30049053 (iv) Streptomycin 30049054 (v) Dapsone (DDS), acednpsone (DADDS), solopsone and Clofazaimine 30049055 (vi) Chloroquine, amodiaquine, mefloquine, quinine, Chloroguamide, pyrimethamine 30049056 (vii) Other antitubercular drugs 30049057 (viii) Other antileprotic drugs 30049058 (ix) Other antimalarial drugs 30049059 8.1 The Applicants have classified the disputed products ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 108/95-Central Excise, dated the 28th August, 1995, number G.S.R. 602(E) dated the 28th August, 1995; or (v) cleared for export under bond in terms of the provisions of the Central Excise Rules, 2002. 12. The Commissioner has, in para 22 of the Order, held that the applicants are not maintaining the separate accounts for the inputs and input services as are required under Rule 6(2) of the Cenvat Credit Rules, 2004 and hence are reauired to pay an amount equal to 10 per cent under Rule 6(3) of the Cenvat Credit Rules, 2004. 13. It is the contention ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al in the case of Punjab Stainless Steel Industries reported in 2008 (226) E.L.T. 587 (Tri. - Del.) = 2008 TIOL 1004 has held that the Cenvat credit of the inputs used in exempted goods for export is permissible and refund in respect thereof can be claimed under Rule 5 of the Cenvat Credit Rules, 2004. 18. Prima facie, it appears that the Order of the Commissioner is contrary to and inconsistent with the judgment of the Hon'ble Bombay High Court dated December 6, 2007 in Writ Petition No. 6951 of 2007 filed by M/s. Repro India Ltd. [2009 (235) E.L.T. 614 (Bom.)] in which it has been held as under : "8. The Cenvat credit is allowed on the duty paid on inputs to mitigate the effect of double taxation of levying duty on inputs ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 6(6)(v) of the Cenvat Credit Rules, 2004 to the effect that the bar created by Rule 6(I) will not apply for goods exported. Considering the conscious and express provisions contained in Rule 6(6)(v) for exported goods, to deny the permission to export under bond and/or to levy 10% on the value of the exported goods under Rule 6(3)(b) on the footing that the printed books are exempt and, therefore, attract Rule 6(1) would be incorrect and completely nullify and frustrate Rule 6(6)(v). 9...... A perusal of the aforesaid Rules would clearly show that sub-rule (i) to (vi) are identical and the difference in Rule 6(6) of the Cenvat Credit Rules, 2004 and 6(5) of the Cenvat Credit Rules, 2002 is not relevant for the purpose of the present....