2018 (10) TMI 955

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....ments which are exempt from payment of whole of duty under Notification No. 4/97-CE dated 01.03.1997. The generic products manufactured by the assessee-appellant which were chargeable to Nil rate of duty. The assessee-appellant opted for modvat credit facility and was paying 8% of the value of exempted goods in terms of Rule 57CC(1) of the erstwhile Cenvat Excise Rules, 1944. To that effect, the assessee-appellant filed declaration under Rule 173B of the Rules. An audit was conducted on 13.05.1998 and it was found that the assessee-appellant has been manufacturing "Chloroquin Phosphate Tablets" w.e.f. 10.05.1997 and cleared the same without payment of duty during the period from 6/97 to 12/97, in terms of Notification No. 4/97-CE dated 01.0....

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....e products in form RG-I register. As the appellant has not availed Cenvat credit on the inputs used in the manufacture of Chloroquin Phosphate Tablet, therefore, the assessee-appellant is not required to pay an amount equivalent to 8% of the value of Chloroquin Phosphate Tablet cleared by them without payment of duty. Therefore, the question of imposing penalty does not arise. 4. On the other hand, the Ld. AR submits that it is the allegation in the show cause notice that the assessee-appellant is availing Cenvat credit on the inputs, namely, Starch IP Grade & Magnesium and assessee-appellant has not come with the necessary evidence that they are not availed Cenvat credit on these items, therefore, the demand is rightly confirmed and the p....