TaxTMI 
TaxTMI 
2019 (7) TMI 785
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..... Banerjee, Adv For The Respondent : Mr. V. Sridharan, Adv., Mr. Ravi Raghavan, Adv., Mr. Rahul Tangri, Adv., Mr. Rishi Raju, Adv., Mr. Deepro Sen, Adv. And Mr. Harsh Shukla, Adv. ORDER The Court : This is an appeal from a judgement and order dated 23rd March, 2007 made by the learned tribunal. The facts are very interesting. The respondent is engaged in the production of two types of produc....
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....erted that input duty was paid on these intermediate products and availed of by the respondent. The appellant came down very heavily on the respondent. According to the submission of Mr. Maity, his client invoked Rule 57CC of the Central Excise Rules, 1944. Rule 57CC (1) and (9) are very material for this case. They are set out hereunder : (1) Where a manufacture is engaged in the manufactu....
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.... goods at the time of their clearance from the factory. (9) In respect of inputs (other than inputs used as fuel) which are used in or in relation to the manufacture of any goods, which are exempt from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty, the manufacturer shall maintain separate inventory and accounts of the receipt and use of inputs for the afores....
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....roduct is exempt from duty but credit of duty paid on the said input is availed of by the manufacturer, then the law does not tolerate this. The manufacturer is liable to pay 8% flat rate on the whole product. But this case is entirely different, as discussed above. The above finding of fact that the input used is only minimal is not controverted. At this stage, when we are hearing the appeal ....