2007 (5) TMI 127

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of duty does not apply. As such, he prays that in this case no pre-deposit is required. However, he admits that there is a requirement of pre-depositing the penalty amount of Rs. 20,00,000/-. 2. After hearing the matter for some time, we waive the requirement of the pre-deposit of the penalty amount as the appellants have a prima facie case hi their favour and take up all the seven appeals for disposal today itself with the consent of both sides. 3. The appellants took input duty credit on the following items: (a) Alum Ferric (b) Sulphuric Acid (c) Caustic Soda Flake/Lye (d) Soda Ash (e) Cation Resin (f) Anion Resin (g) Furnace Oil (h) Elo-Guard-86/Max Treat 3330 ^1(i) Alum Ferric (j) Sulphuric Acid (k....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....-5 2001 6/2000 to 8/2000 Coke 95,85,592/- 4. MP-13/SAIL/B-III/ Coke/2000 -01/782, dated 26-6-2001 9/2000 to 10/2000 Coke 62,53,897/- 5. IV(9)129-MP/SAIL/97- 98/8643, dated 5-9-2000 1/2000 to 3/2000 Crude Coal Tar & Spilled Tar 63,305/- 6. MP-13/B III/SAIL/COALTAR/2000-01/497, dated 29-12-2000 4/2000 to 9/2000 Crude Coal Tar & Spilled Tar 2,30,036/- 7. MP-13/B-III/SAIL/COALTAR/2000-01/695, dated 5-5-2001 10/2000 to 01/2000 Crude Coal Tar 1,21,487/-                                    &....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ates that this amount has also been reversed by the appellants, 6. Shri Majumdar also states that since the goods in question are in the nature of bye-products, no credit is required to be reversed in terms of Rule 57D. Alternatively, he also states that since demineralised water, an intermediate goods, is used for the production of steam and electricity, the credit is available under Rule 57B and there is no requirement of reversing the said amount. 7. We find that whatever credits are allowed under Rules 57A & 57B are subject to the restriction under Rule 57CC with the exceptions mentioned under Rule 57D We are of the view that in the present case, since the small quantity of final goods, namely, off-grade Coke and Crude/Spilled Tar....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is no dispute in the present case that a common input has been used for both dutiable and non- dutiable lamps and that it is not possible to segregate the same input for separate use and it has also not been possible to keep separate-accounts. The spirit of Rule 57AD is that input duty credit cannot be allowed to exempted final product. Though the decision in the case of Chandrapur Magnet (supra) 1996 (81) E.L.T. 3 (S.C.) has been rendered in the context of an exemption notification, the ratio of the said decision holding that reversal of credit before clearance of the exempted goods amounts to non-availing the credit, when it is not possible to segregate the inputs, is applicable in our view to facts of this case and we find that in severa....