2004 (3) TMI 214

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....learned SDR, submitted that the respondents manufacture marble slabs and sand stone slabs and avail Cenvat credit of the duty paid in respect of lubricants; that the Deputy Commissioner, under the Order-in-Original No. 25/2002, dated 26-3-2002, demanded Rs. 30,338/- and imposed a penalty of equivalent amount on the ground that the respondents had used the lubricating oils and greases in the manufacture of exempted goods and they had not maintained separate accounts for receipt, consumption and inventory of the inputs in question; that the respondents were, therefore, liable to pay an amount equal to 8% of the total price of the exempted goods; that, however, on appeal, the Commissioner (Appeals), under the impugned order, has set aside the ....

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....is squarely covered by the provisions of Rule 12; that they have reversed the Cenvat credit proportionately in respect of inputs used in exempted products. The question of charging 8% of the price of the exempted products, does not arise. He also relied upon the decision in the case of SAIL, Bokaro Steel Plant v. C.C.E., Jamshedpur, 2002 (142) E.L.T. 574 (T) wherein it has been held that in absence of machinery provision, recovery of input duty credit at flat rate of 8% cannot be recovered. 4. We have considered the submissions of both the sides. Rule 57AD of the Central Excise Rules, 1944, clearly provided that the Cenvat credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods, except in....