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TMI Blog2002 (12) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... fter hearing both sides for some time we found that it was possible to dispose of the appeal itself as the issue in dispute is covered by earlier orders of the Tribunal in favour of the assessee; hence after waiving the pre-deposit of duty of Rs. 18,10,331/- and penalty of Rs. 4 lakhs, we proceed to decide the appeal itself with the consent of both sides. 2. The appellants herein manufactured HDP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son. It is the contention of the appellants that although the machines mainly produced labels and badges, the machines were also used for the production of laces falling under Chapter Heading No. 5804.12 which were cleared on payment of appropriate duty and therefore the machines in question were not used exclusively for manufacture of final products on which no duty was payable. 3. On hearing bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal on consideration of the language of the Rule and the expression "exclusive" in dictionaries held that, credit was admissible as the capital goods in question were not used exclusively for the production of final product which is exempt from the whole of duty of excise leviable thereof or chargeable to nil rate of duty. In the case of SIEL Sugar v. Commissioner of Central Excise [1998 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ekar, Member (T)]. - Rule 57R before its amendment by virtue of Notification No. 46/97-C.E.(N.T.), dt. 1-9-1997 provided for denial of credit in the case of capital goods which were used for manufacture of those goods which were exempt from payment of duty. Therefore where a machine produced goods, some of which were dutiable and some of which were exempt, there was scope for doubt whether the mac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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