TaxTMI 
TaxTMI 
2003 (1) TMI 753
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....ic acid in the manufacture of which vanadium pentoxide is used in respect of which they avail of MODVAT credit under Rule 57A of the Central Excise Rules, 1944; that Sulphuric acid is cleared by them on payment of duty and also at Nil rate of duty; that three show cause notices were issued to them for demanding payment @ 8% of the price of the Sulphuric Acid cleared without payment of duty for the period from March, 1998 to August, 1999 in terms of Rule 57CC; that the Assistant Commissioner, under the Order-in-Original No. 40-42/99 dated 3.12.1999, confirmed the demand which has also been upheld by the Commissioner (Appeals), under the impugned Order. The learned Counsel mentioned that the following quantity of input was received and used i....
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....t matter the final product which is dutiable as also exempt is Sulphuric Acid; that since there is no 'other final product', Rule 57 C.C. (1) has no application; that the manufacture of more than one final product is necessary is apparent from the Provisions of sub-rule (2) of Rule 57C which provides that manufacturer "is engaged in the manufacture of any final product which is chargeable to duty as well as in the manufacture of any other final product which is exempt from the whole of the duty of excise leviable thereon"; that this view is further strengthened by sub-rule (1) of Rule 57 C.C. also which also speaks of "any other final product which is exempt from the whole of the duty of excise"; that when Rule 5....
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....manufacturer had reversed the credit taken on inputs contained in the final product cleared without payment of duty. 3. Countering the arguments, Shri R.D. Negi, learned Senior Departmental Representative, submitted that since the Appellants had not maintained separate inventory and accounts of the receipt and use of vanadium Pentoxide used in exempted as well as dutiable final products, they have to pay an amount equal to 8% of the price of exempted goods under Rule 57CC(1); that non availment of credit of Vanadium Pentoxide after March, 1998 does not mean that the same is not in use in the manufacture after March, 1998; that there are two types of final products - one is dutiable Sulphuric Acid and the other is exempted Sulphuric Acid; t....