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TMI Blog2018 (8) TMI 1670X X X X Extracts X X X X X X X X Extracts X X X X ..... mine the value of 'chloroquine' at 115% of the cost of manufacture for discharge of liability at 8% under rule 57AD of the erstwhile Central Excise Rules 1944. 2. Appellant manufactures 'chloroquine phosphate' and 'bulaquine' which are cleared and sold in composite pack comprising of five tablets of the former and five capsules of the latter. The composite product is sold as 'aablaquin' and it is the claim of the appellant that they have cleared the goods on payment of duty at appropriate rate applied to the price of composite pack. Accordingly, they had claimed CENVAT credit on the input used in common for manufacture of both which was sought to be denied in show cause notice dated 14th January 2003 as the prescriptions of rule 57AD permi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that their filing of the classification list under section 173B of the Central Excise Rules, 1944 made it amply clear that the goods were so packed and duty liability was so discharged owing to which the extended period under section 11A of the Central Excise Act, 1944 could not be invoked. 5. Learned Authorised Representative submits that the appellant had been changing their stand by first claiming that the duty liability had been discharged on both the 'chloroquine phosphate' and 'bulaquine' whereas it was now claimed that the goods being packed together amounted to manufacture. Furthermore, it is his contention that composite pack has a specific connotation which does not apply to the claim of the appellant. Relying upon rule 122E of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actured by the appellant are to be cleared separately and distinctly as 'chloroquine phosphate' and 'bulaquine'. 7. That 'chloroquine phosphate' is an exempted product is not in dispute. Payment of duty on exempted products does not, in any way, take it out of sphere of the definition of the 'exempted goods' in the Central Excise Rules, 1944 or the successor rules carved out for administration of CENVAT Credit Rules, 2004. Accordingly, to the extent that 'chloroquine phosphate' is an exempted goods and that in the manufacture of those, and other dutiable goods, the appellant has utilized common inputs taking credit thereof, without distinguishing between utilization on exempted goods and on dutiable goods, the liability under rule 57AD of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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