TaxTMI 
TaxTMI 
2010 (10) TMI 677
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....tice, nor any request for adjournment. 2. A perusal of the records shows that the respondent was engaged in the manufacture of compounded rubber products during the period of dispute (March to September 1998) and was clearing these goods without payment of duty after classifying them under SH 4005.10, for which the tariff prescribed 'nil' rate of duty. During the above period, the respondent was also clearing certain compounded rubber products on payment of duty as applicable to SH 4005.90. In respect of common inputs, they were availing MODVAT credit also without maintaining separate accounts for the inputs used in the manufacture of dutiable final products and inputs used in the manufacture of the exempted final products. In this si....
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....ined with any textile material, in relation to the manufacture of which no credit of the duty paid on the inputs used has been availed under Rule 57A of Nil               the Central Excise Rules. 1944. - 4005.20 - Used within the factory of production for the manufacture of excisable goods falling within this Schedule - Nil 4005.90 - Other 18% 4. It is submitted that it has never been in dispute that the respondent's products were classifiable, during the period of dispute, under Heading 4005. It is submitted that the respondent had admittedly availed MODVAT credit on the inputs used in, relation to, the manufacture of the said pr....
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....dia Ltd., (supra) will not have any bearing. 7. On considering the submissions of the learned SDR, we have found a good case for the appellant. Classification of excisable goods is a fundamental part of assessment of the goods to duty of excise. The compounded rubber products manufactured and cleared by the respondent during the relevant period was rightly classified under heading 4005 and sub-heading 4005.90 by the Revenue inasmuch as, admittedly, the manufacturer had availed MODVAT credit of the duty paid on inputs used in the manufacture of the said goods. It is not in dispute that the respondent did not manufacture any intermediate product classifiable under SH 4005.20 during the material period. In this scenario, the products cle....