TMI Blog2009 (1) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... and gum base paper, used in the manufacture of inlay paper and label/stickers, which in turn is used in the manufacture of cassettes, would be available to the Respondents - Decided in favour of assessee. - 1348/2007-SM - 45/2009-SM(BR)(PB) - Dated:- 9-1-2009 - Shri Rakesh Kumar, J. REPRESENTED BY : Shri S.K. Panda, DR, for the Appellant. Shri K. Srikant, Advocate, for the Respondent. [Order]. Facts of the case, in brief, are that the Respondents manufacture blank/unrecorded cassettes falling under Chapter Heading 85.23 and recorded cassettes failing under Heading 85.24 of the Central Excise Tariff. The Respondents are also availing Cenvat credit facility under Cenvat Credit Rules, 2002. One of the inputs used by them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls manufactured from these inputs are captively used in the factory in manufacture of cassettes. He, therefore, pleaded that the impugned order is contrary to the provisions of sub-rule (1) of Rule 6 of the Cenvat Credit Rules and, therefore, the same is not correct. 2.2 Shri K. Srikant, Advocate, the learned Counsel representing the Respondent pleaded that inlay card and the stickers/labels are not the finished products. These are the intermediate products which are used in the manufacture of cassettes and, therefore, the Cenvat credit of duty on art-paper and gum base paper would be available to the Respondent. In this regard, he cited the Hon ble Supreme Court judgment in the case of Escorts Ltd. v. CCE, Delhi reported in 2004 (171) E. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and gum base paper used in the manufacture of these intermediate products would be available or not. The Respondent have relied upon Hon ble Supreme Court judgment in case of Escorts Ltd. v. CCE, Delhi (supra), on going through which I find that the same is based on Rule 57D(2) of the Central Excise Rules, as it existed during the period prior to 1-4-2000 and according to which the credit of specified duty allowed in respect of any inputs shall not be denied or varied on the ground that any intermediate products have come into existence during the course of manufacture of final product and that such intermediate products are, for the time being, exempt from the whole of the duty of excise leviable thereon or chargeable to nil rate of dut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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