TMI Blog2007 (7) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... was squarely covered by circular issued by the Central Board of Excise and Customs No. 231/66/96/ES dated 25-7-1996 wherein the Board had clarified that the credit of the duty paid on the common input is admissible when used in the manufacture of the final product once the said credit on duty paid inputs going into the exempted category of the final product is debited in the RG 23A Part II accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sation of inputs used for the exempted category and they also did not pay in amount of 8% of the value of such exempted goods as per Rule 57CC. 3. On 21-1-2002, show cause notice was issued by the Commissioner of Central Excise Customs, Aurangabad, and after hearing the assessee, the notice was confirmed on 22-8-2002. The Commissioner confirmed the notice by directing the assessee to pay an am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In fact, even the Assessing Officer has observed in his order as follows : "When inputs are required for manufacture of exempted product, the assessee is issuing self invoice clearing the inputs to self by reversing the credit availed under Rule 57F(3) of Central Excise Rules, 1944, [now new Rule 3(4) of Cenvat Credit Rules, 2001]. Thereafter, assessee is reducing the stock of such inputs from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the exempted category of the final product is debited in the RG 23A Part II account before removal of the exempted final product on actual or pro rata basis. From the narration of facts in the order of the Assessing Officer, it is evident that the credit was reversed and the input was deducted from RG 23A Part II at the stage where inputs were put in the process for production of exempted produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23A -Part II account before the removal of exempted final product on actual or pro rata (estimated) basis." 7. We are unable to find any fault with the observations of learned Members of CESTAT for which they were inclined to allow the appeal of the assessee. No substantial question of law arises now for our consideration. The appeal of the department is therefore, summarily dismissed. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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