2002 (1) TMI 211

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.... engaged in the manufacture of various excisable goods like Solvent, Petroleum residues etc. in respect of which they used the various inputs i.e. Cresote oil, Phenol fraction, Aromex etc. The appellants are availing the benefit of Modvat credit of duty paid on the said inputs utilised in the manufacture of the said final product. Apart from that, the appellants are also engaged in the refining of....

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....t nil rate, they are paying the excise duty @8% on the value of the coal tar in terms of the provisions of Rule 57CC. They are also maintaining separate records for receipt and consumption of such Modvatable inputs. 3. The appellants were issued two show cause notices raising demands of duties totally Rs. 50,638.00 for the period - October, 1997 to March, 1998 on the ground that the appellants ar....

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....acture of coal tar which has been cleared at nil rate of duty. As such, the provisions of Rule 57CC are not applicable in their case. This fact, submits the learned Advocate, though pleaded before the authorities below, has not been found favoured by them and they have confirmed the demands on the hypothetical conclusion that the appellants are using the Modvatable inputs in respect of excisable a....

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....e whole of duty of excise leviable thereon, or chargeable to nil rate of duty, and the manufacturer takes the credit of the specified duty on any input which is used in or in relation to manufacture of both the aforesaid categories of final products, the manufacturer shall pay an amount equal to 8% of the price of the exempted products. For the present case, the appellants have taken a stand that ....