TMI Blog2007 (5) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of duty and he states that this amount not being in the nature of duty, the provision of Section 35F relating to pre-deposit of duty does not apply. As such, he prays that in this case no pre-deposit is required. However, he admits that there is a requirement of pre-depositing the penalty amount of Rs. 20,00,000/-. 2. After hearing the matter for some time, we waive the requirement of the pre-deposit of the penalty amount as the appellants have a prima facie case hi their favour and take up all the seven appeals for disposal today itself with the consent of both sides. 3. The appellants took input duty credit on the following items: (a) Alum Ferric (b) Sulphuric Acid (c) Caustic Soda Flake/Lye (d) Soda Ash (e) Catio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. MP-13/SAIL/B-III/ Coke /2000-01/482, dated 29-12-2000 4/2000 to 5/2000 Coke 69,47,941/- 3. MP-13/SAIL/B-III/ Coke/2000-01 /697, dated 3-5 2001 6/2000 to 8/2000 Coke 95,85,592/- 4. MP-13/SAIL/B-III/ Coke/2000 -01/782, dated 26-6-2001 9/2000 to 10/2000 Coke 62,53,897/- 5. IV(9)129-MP/SAIL/97- 98/8643, dated 5-9-2000 1/2000 to 3/2000 Crude Coal Tar Spilled Tar 63,305/- 6. MP-13/B III/SAIL/COALTAR/2000-01/497, dated 29-12-2000 4/2000 to 9/2000 Crude Coal Tar Spilled Tar 2,30,036/- 7. MP-13/B-III/SAIL/COALT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of steam and electricity, the credit is available under Rule 57B and there is no requirement of reversing the said amount. 7. We find that whatever credits are allowed under Rules 57A 57B are subject to the restriction under Rule 57CC with the exceptions mentioned under Rule 57D We are of the view that in the present case, since the small quantity of final goods, namely, off-grade Coke and Crude/Spilled Tar have been cleared by the appellants without payment of duty, they are subject to the provisions of Rule 57CC except inputs used as fuel as provided in the Rule itself. However, there is merit in the submissions of the appellants, which has also not been controverted by the Department, that the production process in the plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal product. Though the decision in the case of Chandrapur Magnet (supra) 1996 (81) E.L.T. 3 (S.C.) has been rendered in the context of an exemption notification, the ratio of the said decision holding that reversal of credit before clearance of the exempted goods amounts to non-availing the credit, when it is not possible to segregate the inputs, is applicable in our view to facts of this case and we find that in several decisions cited by the learned Advocate for the respondents, the Tribunal has applied the said ratio in similar cases. We also note that the original authority has not disputed the reasonableness of the formula adopted by the assessee for reversing the credit amount. We are also of the view that it will be grossly unjust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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