2001 (8) TMI 178

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.... on the inputs can be availed and utilised towards the payment of duty on the final products. Where the final products are exempted the credit is not allowed. It may happen that some inputs may be used in the manufacture of final products some of which are dutiable and the others are not dutiable. In that situation Rule 57C requires that the inadmissible portion of the credit should be written bac....

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....turer takes credit of the specified duty on any inputs (other than inputs used as fuel) which is used or ordinarily used in or in relation to the manufacture of both the aforesaid categories of final products, whether directly or indirectly and whether contained in the said final products or not, the manufacturer shall, unless the provisions of sub-rule (9) are complied with, pay an amount equal t....

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....uty earlier availed by them on that portion of the inputs which went into the exempted final product was written back from time to time by issue of invoices under Rule 258/173G. The show cause notice was issued on 23-5-1998. The charge in the show cause notice was that the practice adopted by the present appellant was in contravention of Rule 57CC. The specific averment in the show cause notice re....

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....ll show cause notices by this common order-in-original. He accepted the statement (which was made in the show cause notices also) that the assessee were maintaining separate accounts of such inputs. He, however, observed that sub-rule (9) reproduced above required not only maintenance of separate accounts but also required "separate inventory". He termed this as non-compliance with the spirit of s....