2007 (8) TMI 146

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.... (VR) dated 7-12-2005 passed by the Commissioner of Central Excise and Customs, Visakhapatnam-II. 2. The appellants are the manufacturers of paper. They produce both dutiable and exempted products. Revenue proceeded against them by way of issue of Show Cause Notice on the ground that they cleared news print-in reels without payment of duty and as they had not maintained separate accounts in res....

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....entative for the revenue. 3. We heard both the sides. It is seen that the appellants clear both dutiable and exempted products. The subject matter of the present appeal is "news print-in reels". It is seen that the classification of news print-in reels has been settled by the decision of this Bench in the case of Andhra Pradesh Paper Mills v. CCE, Visakhapatnam-II - 2006 (206) E.L.T. 830 (Tri. ....

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....ble goods. That mean, they are taking credit only on that quantity of inputs that go into the manufacture of dutiable goods by leaving the credit on the exempted goods. That, hence, the question of reversing the credit/demand of 8% / 10% duty under Rule 6 of Cenvat Credit Rules, 2002 as proposed in the Show Cause Notice is not sustainable in law. From the above paragraph, it is seen that the ap....