COMMISSIONER OF C. EX. Vs. PHILIPS INDIA LTD.

JUDGEMENT

(1.) HEARD both sides. The respondents have taken input duty credit on Nitrogen Gas, which is received through pipeline. Most part of it has been used in manufacture of dutiable lamps and some part of it has been used for non -dutiable lamps.

(2.) THE learned Advocate for the respondents states that it is not in dispute that since the nitrogen gas is received through pipeline, is in not possible to segregate the same for use in dutiable and non -dutiable lamps. It has not also been possible to maintain any separate account. Hence, using a formula, they have reversed the proportionate amount of credit amounting to Rs. 62,827/' - and Rs. 14,743/ - representing the input duty on nitrogen gas used in the non -dutiable lamps. He also states that the original authority has recorded in his order that the department is not disputing the correctness of the formula. The learned Advocate also makes a statement that this reversal was made before clearance of the non -dutiable lamps from the respondents factory .

(3.) THE original authority has, however, confirmed the demand amounting to Rs. 1,09,21,592/ - representing 8% of the value of the exempted lamps on the ground that the rules do not permit such a reversal and requires 8% of the value of the exempted clearances to be paid.