2014 (8) TMI 221

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....o known as '03 Air-Regeneration Compound') and is cleared at nil rate of duty under Notification No. 64/ 95 C.E. dated 16.03.1995 for supply to Indian Navy, (ii) Sodium Potassium Alloy and (iii) Potassium Metal, which are cleared on payment of duty at tariff rate. The major inputs used in the manufacture of the above three final products are (i) Potassium Chloride, (ii) Sodium Metal, (iii) Liquid Nitrogen, and (iv) LDO. While the appellant maintained separate accounts for the inputs (Potassium Chloride and Sodium Metal) used in the manufacture of exempted final product (Potassium Super Oxide), the appellant did not maintain separate accounts for the other two inputs namely Liquid Nitrogen and LDO used in the manufacture of both exempted & d....

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....nbsp;     (a) That LDO was being used by the appellants as fuel in the manufacture of both dutiable as well as exempted final products. Both the said Rules 57AD and 6(3) clearly stipulated that separate accounts need not be maintained in respect of inputs intended to be used as fuel in the manufacture of dutiable as well as exempted final products;          (b) That the appellant had maintained separate accounts for their substantially used inputs namely Potassium Chloride and Sodium Metal used in the manufacture of exempted final product.         (c) That the practice of reversing credit of the inputs (Liquid Nitrogen & LDO), used in the ma....

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....availed. Similarly, in respect of LDO the total CENVAT Credit available was Rs. 2,12,928/- out of which an amount of Rs. 1,82,836/- has already been reversed in respect of exempted product, leaving a net CENVAT Credit of Rs. 30,092/- actually availed. 4. On the other hand Shri Jitendra Nair, (Ld. A.R.) for the revenue argued that the appellant had no option but to pay an amount @ 8% in terms of provisions of Rule 57AD of Central Excise Rules 1944 and Rule 6(3) of the CENVAT Credit Rules, 2001 in force during the material period. He reiterated the finding of the lower appellate authority in the impugned Order-in-Appeal. 5. Heard both sides and perused the records. 6. After cutting out the unnecessary details the undisputed fact is t....