TMI Blog2005 (8) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... ption Notification No. 67/95, dated 16-3-95 is available to an intermediate product captively consumed when the final product which has been exempted is cleared on payment of an amount of 8% of the sale price in terms of Rule 57CC of the Central Excise Rules, 1944. The miscellaneous application has been filed for additional grounds. 2. Shri Arvind Datar, learned Sr. Advocate for the appellants, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mended vide Notification No. 3/2001-C.E., dated 1-3-2001 vide Sl. No. 53. It should be borne in mind while clearing 'Pyrazynamide', an amount of 8% of its sale value was paid in terms of Rule 57CC, because the same inputs of 'Pyrazynamide' were also used for dutiable final products. The appellants availed exemption for the intermediate product under Notification No. 67/95 on the ground that 8% amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f of the Revenue. He reiterated the points in the Order-in-Original. 4. We have gone through the records of the case carefully. The misc. application furnishing additional grounds is in respect of legal points, the same is allowed. In our view the correct legal position can be ascertained while going through the Notification No. 67/95, dated 16-3-95 and also Rule 57CC and then applying the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This fact cannot be disputed. What was paid as 8% is in terms of Rule 57CC. In other words, when common inputs are used in the manufacture of exempted and dutiable products and if no separate account of inputs is maintained, an assessee is required to pay an amount of 8% on the sale value of the exempted products. This Rule has been framed because no Cenvat credit is admissible to an input used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, since the issue involves interpretation of Notification and Central Excise Rules, imposition of penalty is not justified. We hold that the intermediate product PMCA is not entitled for the benefit of Notification No. 67/95 when the final product 'Pyrazynamide' is exempted inspite of the fact that the product is cleared on payment of 8% amount in terms of Rule 57CC. Further we hold that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
