2005 (9) TMI 174

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....cisable commodity. They availed the input credit on the materials used in the manufacture of the MS Pipes. During the year 2002-2003, they received an order from HMWSSB, Hyderabad for Krishna Drinking Water Supply Scheme for manufacture, supply and other connected works with the commissioning of pipeline along Nagarjuna Sagar-Hyderabad Road. They were also executing projects for various other agencies. As far as the project for Krishna Drinking Water Supply Scheme is concerned, the same was notified under Notification 47/2002-CX., dated 6-9-2002. This Notification exempts MS Pipes used in the Notified Projects from Central Excise Duty. As regards the other projects, the pipes had to be cleared on payment of duty of 16%. Since the appellants....

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....." From the above, the Adjudicating Authority has categorically admitted that all the inputs listed above are common inputs and hence, the impugned OIO has to be set aside. (ii) The appellants, in terms of Rule 6(3)(b) of Cenvat Credit Rules, 2002, opted not to maintain separate records and this fact was intimated to the Department prior to the first clearance of exempted final product. On going through Rule 6(3) of Cenvat Credit Rules, it is clear that an option is given to the manufacturer to maintain separate accounts of input for dutiable and exempted products. Since in the present case, the appellant has opted not to maintain separate accounts, they paid 8% of the price of the exempted final product. Therefore, the Re....