2008 (8) TMI 365

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....hly disproportionate to the credit availed on common inputs which could be attributed to goods which have been cleared without payment of duty? (b) Whether the Tribunal, in the facts and circumstances of the case, is justified in accepting the offer of the respondent to reverse the entire credit attributable to the exempted product covered in the nine show cause notices? (c) Whether the Hon'ble CESTAT is justified, in the facts and circumstances of the case, in setting aside the order of the Commissioner confirming the demands in nine Show Cause Notices by not considering the provisions of erstwhile Rule 57AD of Central Excise Rules, 1944, Rule 6 of CENVAT Credit Rules, 2001 and Rule 6 of CENVAT Credit Rules, 2002 which were in force ....

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.... the demand in the four show cause notices as the Department is not in appeal before us. We are inclined to accept the offer of the appellant-company to reverse the entire credit attributable to the exempted product covered in the nine show cause notices and accordingly we set aside the order of the Commissioner confirming the demand in respect of the nine show cause notices with the direction to consider and accept their offer to reverse the entire credit on the common inputs i.e. caustic soda lye and hydrochloric acid. The department shall re-determine the credit taken on the common inputs i.e., caustic soda lye and hydrochloric acid in so far as they relate to demand proposed in the 9 show cause notices. The assessee shall produce the ne....