2007 (12) TMI 209 - HC - Central Excise

Export of exempted goods - common inputs in dutiable goods and exempted goods - non-maintenance of separate accounts as contemplated by Rule 6(2) – held that in such case where goods are exported, direction by revenue to the petitioner to pay 10% of sale price of exempted goods u/r 6(3)(b) is not justified - If the exempted products are exported outside India the provisions of Rule 6(6)(v) of CCR are applicable. Therefore, the bar provided u/r 6(1) and the liability created u/r 6(3)(b) are not attracted – therefore, credit is available on “inputs used in mfg. of goods exported” even if goods are exempted