2009 (4) TMI 200

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....n this civil miscellaneous appeal, the following substantial question of law is raised for consideration. "Whether the CESTAT is right in allowing Modvat credit of duty paid on inputs furnace Oil/LSHS used in the manufacture of exempted final products". 2. The assessee is the manufacturer of both cotton yarn on plain reel hanks and cotton yarn on cones/cheese. The cotton yarn on cones/cheese....

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....anufacture such final products which are chargeable to duty as well as exempted goods, then, the manufacturer shall maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of exempted goods and take CENVAT credit only on that quantity of inputs which is intended for use in the manufacture of dutiable goods." 3. We find that in 2006 (193) E.L.....

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....nvat/Modvat - Furnace oil used as fuel - Whether credit on inputs under Rules 57C and 57CC of erstwhile Central Excise Rules, 1944 used in both dutiable as well as exempted goods is admissible when neither separate accounts maintained nor 8% of price reversed - Modvat credit availed on furnace oil used in production of own final products as well as for job work articles cleared without payment of ....