TMI Blog2006 (11) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... i Anil Kumar, JDR, for the Respondent. [Order per : T.K. Jayaraman, Member (T)]. The applicants are required to pre-deposit duty amount of Rs. 47,29,466/- and penalty of Rs. 26,41,089/- besides interest amount of Rs. 26,41,089/-. The appellants availed Cenvat credit on the inputs used in the manufacture of Bulk Drugs. A portion of the bulk drugs, which are exempted, are captively consume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rao urged that the lower authorities have not discussed the above mentioned case-laws relied on by the appellant. He stated that the contention of the department that the amount of 8%/10% is to be paid on the value of the exempted Formulations cleared from the factory, is not correct. It was also submitted that there is no mala fide intention on their part to suppress any information from the Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be put to terms. 4. We have gone through the records of the case carefully. This case involves the interpretation of Rule 6 of Cenvat Credit Rules, 2002. The relevant portion of Rule 6 is reproduced below :- Rule 6. Obligation of manufacturer of dutiable and exempted goods. (1) The CENVAT credit shall not be allowed on such quantity of inputs which is used in the manufacture of exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, if any, paid on such goods, of the exempted final product charged by the manufacturer for the sale of such goods at the time of their clearance from the factory. What is contemplated in the above rule is payment of an amount equal to 8%/10% of the total price of the exempted final product charged by the manufacturer for the sale of such goods at the time of their clearance from the factory. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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