TMI Blog2008 (4) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... resh, SDR, for the Respondent. [Order per : P. Karthikeyan, Member (T)]. M/s. V.R. Foundries, Coimbatore has filed this application for waiver of pre-deposit and stay of recovery of Rs. 21,39,124/-, interest due thereon demanded from them and penalty of Rs. 50,000/- imposed on them under Rule 173Q of the Central Excise Rules, 1944. After hearing both parties on the stay application, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale price of the exempted good, cleared by V.R. Foundries during the material period January, 2001 to March, 2001. 3. Reiterating the grounds in the appeal, the ld. Consultant for the appellant submits that the case against the appellant found in the orders of the lower authorities to demand 8% of the price of the exempted final product is not that the appellant had not maintained separate acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of dutiable final product and the quantity of inputs used in the manufacture of exempted goods. The appellant had availed Modvat credit only in respect of inputs which had been received and used in the production of dutiable final product. The assessee had maintained separate accounts of receipt and inventory of scrap meant for use in the production of exempted goods on the basis of actuals. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods and take Cenvat credit only on that quantity of inputs which is intended for use in the manufacture of dutiable goods........ 5. We find that the assessee was not liable to pay 8% of the sale price of the exempted final product demanded. In the circumstances, we find that the impugned order demanding 8% of the sale price of exempted castings and imposing penalty on the appellant is not su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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