TMI Blog2016 (10) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods - credit need not be reversed - appeal allowed - decided in favor of appellant. - Appeal No. E/20761/2014 - A/30957/2016 - Dated:- 7-10-2016 - Hon ble Ms. Sulekha Beevi, C.S., Member (Judicial) Sh. N. Ram Reddy, Advocate for the Appellant. Sh. P.S. Reddy, Assistant Commissioner (AR) for the Respondent. Order Per: Sulekha Beevi, C.S. 1. The facts, in brief, are that the appellant is engaged in manufacture of Bulk Drugs and Formulations falling under Chapter 29 30 of the first schedule to the Central Excise Tariff Act, 1985. The appellant cleared 320 Kgs of Cefoperazone Sodium Sterile without payment of duty during the period from 12/2011 to 9/2012, claiming exemption under Notification No. 4/2006-CE dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared by appellant are dutiable and only when the buyers provide Annexure 45, CT-3 certificate the goods are cleared without payment of duty. That therefore appellant has not cleared any exempted goods. He submitted that appellant had by mistake taken these products to be exempted goods and intimation was filed with the department under Rule 6(3A) vide letter dated 01.04.2011, for the financial year 2011-12. The Ld. Counsel submitted that the issue stands covered by the judgments in CCE, Indore V/s. SRF Ltd., [2008 (223) ELT 508 (Tri-Del)] and Hindustan Zinc Ltd., [2008 (223) ELT 149 (Raj)]. 4. On behalf of department, the Ld. AR reiterated the findings in the Impugned Order. 5. I have heard both sides. The impugned demand is made for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process. In case, the goods received under this procedure were not used for specified industrial process, the person who receive the goods is liable to pay the duty hence the goods cleared under Chapter X Procedure are neither exempted nor said to be chargeable to Nil duty. 9.The provisions of Rule 57CC of the Central Excise Rules, provides where a manufacturer is engaged in the manufacture of final product which is chargeable to duty as well as which is exempted from the whole of the duty of excise or chargeable to Nil rate of duty and manufacturer is taking credit on the duty paid on inputs used in both type of products is to pay an amount equal to 8% of the price cleared at Nil rate of duty. 10.As discussed above, the goods cleared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , when the end product leaves the factory. If at the time of receipt of the inputs in the factory, the goods manufactured by the manufacturer in question predictably cannot be said to be chargeable to the duty or exempted from duty or liable to charge at nil rate, the very maintenance of separate inventory would not apply and account for different products will not be possible nor such provision can be attracted depending on end course that may actually take place. In other words, the chargeability to duty on the final product being exempted from whole of the duty or excise leviable thereon or chargeable at the nil rate of duty have nexus with the date on which the manufacturer is entitled to avail credit of duties paid on such inputs used ..... X X X X Extracts X X X X X X X X Extracts X X X X
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