TaxTMI 
TaxTMI 
2006 (10) TMI 15
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.... the order in original vide which duty was confirmed and penalty was also imposed. 2. The relevant fact that arise for consideration are the respondents availed modvat credit of RFO, LDO and Furnace Oil for the manufacture of goods. The respondent was manufacturing duty paid as well as exempted goods. Show cause notice was issued to the respondent for denial of Cenvat credit on such quantity of F....
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....sed by the appellants as fuel. Sub Rule (2) of Rule 57AD and Rule 6 (2) of Cenvat Credit Rules, 2001, specifically exclude inputs intended to be used as fuel in the manufacture of dutiable as well as exempted goods, and appellant are not liable to reverse credit taken on RFO, LDO and furnace oil used as fuel in the manufacture of exempted goods." 4.It is noticed that the above said findings of th....
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....visions o Rule 57F (4). The other part was cleared on payment of duty. The question was whether the appellants were required to reverse modvat credit/pay duty proportionate to the furnace oil used in the manufacture of wire rods cleared without payment of duty. After noting that under sub-rule (2) of Rule 57C which specifically provided exclusion of sub-rule (2) in respect of use of fuel and also ....