2007 (4) TMI 610

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....dran, Adv. Heard both sides. 2. The appeals involve a common issue and hence taken up together for hearing and disposal. 3. The Respondents manufacture Cosmetics, Hair Dyes etc. in Guwahati and availed the area based exemption under notification No. 32/99-CE Dated-08/07/1999. They procure packing and raw materials on which they take credit of basic excise duty and education cess. While pa....

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....is in regard to the utilization of Cenvat Credit obtained through education cess paid on inputs. That sub-rule has no application at all in regard to utilization of credit of "basic excise duty". Provision relating to utilization of basic excise duty credit is to be found in sub-rule (4) of Rule 3 Cenvat Credit Rules. That sub-rule places no limitation at all on utilization of the basic excise dut....

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....4 but I find that the said proviso merely limits the credit of duty paid on inputs for utilisation for payment of duty on the finished goods in which the said inputs have been used in respect of manufacturers availing certain exemptions including the aforesaid exemption No. 32/99. This proviso also merely puts a restriction that the input duty credit cannot be utilized for paying duty on other fin....