2005 (3) TMI 323

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...., Member (J)]. - In this appeal, which has been preferred by the Revenue against the impugned order-in-appeal, the issue relates to the availability of the Modvat credit to the respondents on the inputs utilised in the final product, which was exempt from payment of duty. 2. The facts are not much in dispute. The respondents, at the relevant time of dispute, were engaged in the manufacture of I....

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....eals). He has, however, allowed the credit on the inputs, which had been already gone in the manufacture of the final products in process as well as final products fully manufactured but lying in stock. The question, which falls for our consideration is as to whether the credit on the inputs utilised in the manufacture of the final product in process, is admissible or not. This issue, in our view,....

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....us reading of Rules dealing with the Cenvat Scheme and particularly Rule 57AC and Rule 57AD of the Central Excise Rules, 1944 makes it very evident that Cenvat credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods." The Tribunal has, in that case also, distinguished the decision rendered in the case of CCE v. Premier Tyres Ltd. [2001 (130) E.L....

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....sel has however, contended that since the major portion of the duty i.e. approximately 8,14,316/- had already been paid before the issuance of the show cause notice out of the total duty of Rs. 10,28,006/-, therefore, no penalty is imposable. He has also referred to the judgment of the Tribunal in the case Albert David (supra). In view of the facts and circumstances of the case and the contention ....