TMI Blog2023 (6) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... /95-CE dated 16/03/1995. Therefore, the appellant was required to pay 8% of the value of PSP bed cleared by them without payment of duty. It is clear that the appellant has paid 8% of the value of the rubberized textile fabric which in turn in use for manufacture of PSP, therefore, as the appellant has paid 8% of the value of rubberized textile fabric, which means that appellant has not taken the Cenvat Credit of 8% of the value of rubberised textile fabric. The similar issue came up before Tribunal in the case of LIFE LONG APPLIANCES LTD. VERSUS COMMISSIONER OF C. EX., DELHI-III [ 2000 (4) TMI 90 - CEGAT, COURT NO. II, NEW DELHI ] where it was held that the appellant had satisfied the requirement of not taking Modvat Credit on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h interest and equal amount of penalty was imposed. Against the said order, appellant is before us. 2. No one appeared on behalf of the appellant nor any request of adjournment has been received. 3. Considering the fact that appeal can be disposed of at this stage, therefore, appeal is taken up for disposal. 4. Heard the Learned AR. 5. We find that the appellant had availed the credit in respect of input used in manufacturing of interim product i.e. rubberised textile fabric. The benefit of exemption was not admissible as the goods were liable to be charged at nil rate of duty. If no credit was taken moreover the said rubberised textile fabric being input used for manufacture of PSP which were cleared at nil rate of duty and con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of exempted final products. Sub-rule (1) of this rule specifically provides that payment of duty at 8% may be done, if the manufacturer is not able to meet the requirement [under sub-rule (9)] of maintaining separate inventory and accounts of the receipt and use of inputs for the manufacture of goods on which exemption is claimed. Such payment of duty at 8% brings about the adjust (sic) of excess credit taken. In other words, it is equivalent to reversal of credit on inputs. Therefore, the appellant had satisfied the requirement of not taking Modvat Credit on the inputs used in the manufacture of exempted goods. Their case is specifically covered by Rule 57CC as well as the decision of Supreme Court with regard to not availing of Modv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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