2014 (2) TMI 11

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....kumar, A.R. For the Respondent : Shri N.K. Tiwari, Advocate JUDGEMENT Per : Mr. H.K. Thakur; These appeals have been filed by the Revenue against OIO No. 02/Commr/2007 dated 02.01.2007 and OIO No. 03/Commr/2007 dated 15.01.2007 under which proceedings against the Respondent were dropped. The issue involved is that Respondent was engaged in the processing of fabrics during the relevant ....

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....doubt the benefit of doubt should be given to the Revenue. That adjudicating authority, by giving a liberal interpretation of Notification No. 30/2004-CE, has gone beyond the scope of the exemption notification by allowing the exemption even when the conditions of the notification is not fulfilled. 3. Shri N.K. Tiwari (Advocate) appearing on behalf of the Respondent relied upon the following ca....

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....ent:- 6. It is true that the assessee has not maintained? separate accounts or segregated the inputs utilised for manufacture of dutiable goods and duty free goods, as should have been done. The contention of the Department that in this situation, the assessee is not entitled to reverse the entries and get the benefit of the tax exemption is a question which merits serious consideration. There ....

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....sed in the manufacture of the final products, provided that credit of duty paid on the inputs used in such exempted products is debited in the credit account before the removal of such exempted final products. This circular deals with a case where the manufacturer produces dutiable final products and also final products which are exempt from duty and it is not reasonably possible to segregate i....