2005 (8) TMI 738

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....eals-II), Hyderabad. 2. The appellants are manufacturers of bulk drugs and drug intermediaries. Out of the 56 drugs manufactured by the appellants, about 11 are exempted from payment of duty and rest are dutiable. The appellants availed CENVAT credit on duty paid on the inputs. Some of the inputs used by the appellants which are used in both dutiable and exempted final products. In respect of c....

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.... this Tribunal for relief. 2. Shri G. Shivadas, Ld. Counsel appeared for the appellants and Shri Ganesh Hanuvar, ld. DR for the Revenue. 3. Ld. Counsel adduced the following points: (i) The reversal of CENVAT credit by he appellants satisfies the Rule 6 of the CENVAT Rules. The following case law were relevant to the cases. (a) Dharamsi Morarjee Chemicals Co. Ltd. v. CCE 20....

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....f exempted products. The above point further amplified in the Board's Circular No. 654/45/2002-CEX dated 19.8.2002 and Circular No. 739/55/2003-CX dt. 28.8.2003. Once the credit availed on the inputs has been reversed before the utilization in the final product it cannot be said that the inputs on which the credit has been availed have been used in the manufacture of exempted product. The Trib....

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.... (C) Pushpam Pharmaceuticals Co. v. CCE, Bombay . 4. In view of the above submissions penalty under Section 11AC and interest under Section 11AB are not sustained. 5. Ld. SDR reiterates the contents in the orders of the lower authorities. 6. We have gone through the records of the cases carefully. The issue of availing CENVAT credit in respect of common inputs used for dutiable and exem....