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2008 (6) TMI 317 - AT - Central ExciseUse of common inputs in welding machines (which are dutiable) and medical equipments (which are exempted) - It has been argued on behalf of the Appellants that it is not practicable for them to maintain separate account for how much of brass is required to be consumed in the manufacture of medical equipments and how much for welding machines. The Department has levied 8% of the amount on the exempted medical equipments on the ground that no separate account has been maintained. - In similar situations where it was not practicable to maintain separate accounts of the inputs used in the exempted and dutiable finished goods, this Bench has taken a view that in the absence of separate Rule to deal with such a situation, it would be reasonable to ask the manufacturers to reverse the proportionate amount of credit. Accordingly we set aside the impugned order and remand the matter to the original Authority to check the calculation of the proportionate credit made by the Appellants and adjust the amount paid by the Appellants against the calculated amount which is payable by the Appellants.
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