TMI Blog2007 (10) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed that the following substantial question of law would arise for determination of this Court :- "Whether credit of duty is admissible to the inputs in the present case in terms of erstwhile Rule 57C and 57CC of Central Excise Rules, 1944, used in both dutiable as well as exempted goods when no separate account has been maintained nor 8% duty reversed in respect of clearances of exempted goods?" 2. Facts of the case may first be noticed. M/s Super Auto India Ltd., Faridabad (for brevity, 'the respondent-assessee') is registered with Central Excise Department, having Registration Certificate No. 18/92, dated 19-6-2002 and engaged in the manufacture of Pressure Die Cast Components that fall under Central Excise Tariff Chapter headi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the Deputy Commissioner, Central Excise Division-IV Faridabad-cum-Adjudicating Authority (P-1 P-2 respectively). 4. The respondent-assessee challenged Orders-in-original dated 28-2-2002 before the Commissioner (Appeals), who vide order dated 23-5-2002, directed for pre-deposit of Rs. 11,66,601/- under Section 35F of the Act as a pre condition for admission of appeals. The appeals were subsequently dismissed vide Order-in-Appeal dated 23-7-2002 because the respondent-assessee failed to comply with order dated 23-5-2002 and did not deposit Rs. 11,66,601/- within stipulated period of 30 days (P-3). 5. The respondent-assessee then filed further appeals and the Tribunal allowed the stay application of the respondent-assessee vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of Rule 57C(2) (3) and Rule 57CC(1) (9) of the Rules, which have direct bearing on the controversy involved in the present appeal and the same reads as under :- "57C. Credit of duty not to be allowed if final products are exempt.- (1) xxx xxx xxx (2) Where a manufacturer avails of the credit of specified duty on any inputs and he is engaged in the manufacture of any final product which is chargeable to duty as well as in the manufacture of any other final product which is not chargeable to duty in the same factory, the provisions of sub- rule (1) shall be deemed tube satisfied only when the manufacturer follows the procedure prescribed in sub-rule (1) of Rule 57CC or the provisions of sub-rule (9) of that Rule are comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty paid on such inputs." (emphasis added) 8. A conjoint reading of sub-rule (2) and (3) of Rule 57C of the Rules shows that in cases where inputs are intended to be used as fuel, the provision of sub-rule (1) of Rule 57CC of the Rules are not to apply. However, in other cases where a manufacturer of any final product which is chargeable to duty as well as in any other final product that is not chargeable to duty the manufacturer in order to take credit has to comply with sub-rule (9) of Rule 57CC of the Rules. It envisages that separate inventory/accounts are required to be maintained in respect of the receipt and use of inputs for the aforesaid purpose. Such a manufacturer is restrained from taking credit of the specified duty paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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