TaxTMI 
TaxTMI 
2008 (4) TMI 281
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....n two brands; one being Campa, and another being Mr. Dik Soda. Out of the two products, the product manufactured in the name of Campa is excisable. However, the product in the name of Mr. Dik is not excisable, being covered by exemption notification. 3. The controversy involved in the present case arose in the circumstances, that petitioner is using inputs in manufacture of two products, and is availing Modvat Credit on such inputs. As the inputs for the two products are common, the question arose, because the petitioner sought to avail the Modvat Credit, with respect to the product, on which excise duty is not leviable. But the department did not allow such Credit, on the ground, that there is no provision for reversal. 4. Learned Assist....
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....he input-credit, which they had earlier taken. In the instant case, the reversal of input-credit was, admittedly, made after clearance of the final product, under the exemption notification, and therefore, it was found, that ratio in Chandrapur Magnet case is not applicable to the instant case. 9. With the assistance of learned counsels for the parties, we have gone through the impugned judgment, and have closely gone through the judgment of Hon'ble Supreme Court, in Chandrapur Magnet case. 10. In Chandrapur Magnet's case, of course the controversy involved was, as to whether there is any provision for reversal of Modvat Credit, with respect to the products, which are not liable to excise duty, or in other words are exempted goods? Howeve....
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....estion here precisely is, as to whether the appellant is entitled to retain the Modvat Credit already availed by him on such inputs consumed in production of such exempted goods? 12. In our view, the proviso contained in para 3 of the said notification, as referred to above, is a complete answer, which in no ambiguous terms provides, that the credit of duty paid on the inputs, used in such exempted products is debited, in the credit account, specially by using the words, "before the removal of exempted final products." 13. An attempt was made by the learned counsel for the petitioner to contend, that the petitioner had been consistently following the practice of submitting monthly returns in register RG 23, and therein, he was showing rev....