TMI Blog2007 (1) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... e are inclined to accept the offer of the appellant company to reverse the entire credit attributable to the exempted product covered in the nine show cause notices and accordingly we set aside the order of the Commissioner confirming the demand in respect of the nine show cause notices with the direction to consider and accept their offer to reverse the entire credit on the common inputs i.e., caustic soda lye and hydrochloric acid. The department shall redetermine the credit taken on the common inputs i.e., caustic soda lye and hydrochloric acid in so far as they relate to demand proposed in the 9 show cause notices. The assessee shall produce the necessary evidence in the form of chartered accountant's certificate for the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use notices is from April 2000 to March, 2004. c. The Commissioner has taken the view that Hydrochloric Acid and Caustic Soda Lye are fuel and dropped proceedings in respect of the four show cause notices relating to the demand of duty on starch. However, in respect of the nine show cause notices relating to demand of duty on the bye-products he confirmed the duty. d. According to the appellants in respect of these show cause notices, there is no indication about the nature of inputs and the appellant company contends that the common inputs in these cases are also Caustic Soda Lye and Hydrochloric Acid. e. The appellant company has taken the stand before the Commissioner that the credit taken on these inputs relating to the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Hi-Line Pens Pvt. Ltd, vs. CCE, Delhi-I, 2003 (58) RLT 483 (CESTAT-Del.)=2003 (158) ELT 368 (CESTAT-Del) e. Sagar Twisters vs. CCE, Mumbai, 2005 (70) RLT 287 (CEGAT-LB)=2005 (188) ELT 497 (Tri.-Mumbai) f. Franco Italian Co. Pvt. Ltd. vs. CCE, Mumbai-17, 2000 (40) RLT 295 (CEGAT-LB)=2000 (120) ELT 720 (Tri.-LB) g. Tube Investments of India Ltd. vs. CCE, Madurai, 2002 (52) RLT 444 (CEGAT-Che.)=2004 (177) ELT 880 (Tri.-Chennai) 6. We have carefully considered the submissions. We are convinced that the demand is highly disproportionate to the credit availed on the common inputs which could be attributed to goods which have been cleared without payment of duty. We are not going to the merits of the decision of the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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