COMMISSIONER OF CENTRAL EXCISE, MUMBAI Vs. IVP LTD.

JUDGEMENT

(1.) The appellants are aggrieved and dissatisfied with an order passed by the Customs, Excise and Service Tax Appellate Tribunal. Its West Zonal Bench has allowed a statutory appeal on 29th July, 2005. Hence this Appeal. It was admitted on following substantial questions of law :

(2.) The respondent-assessee holds a Central Excise Registration for manufacture of excisable goods falling under Chapter Nos. 15, 28 and 38 of the Central Excise Tariff Act, 1985. The respondent-assessee is also availing a Cenvat credit of duty paid on inputs and capital goods received in the factory under Cenvat Credit Rules, 200 The respondent-assessee received certain inputs from 1st Jan., 2003 to 23rd April, 2003 and had availed the Cenvat credit of the duty paid on the said inputs. This Cenvat credit amounts to Rs. 1,40,723.50.00 and in that period, an amount of duty was paid with respect to some other input, details of which are set out on page 3 of the Petition.

(3.) The respondent-assessee relied upon sub-rule (1) of Rule 6 of the Cenvat Credit Rules, 2002. However, the Department was of the view that the assessee availed of Cenvat credit on the inputs in the manufacture of both, dutiable as well as exempted goods. They were called upon to reverse the credit which was availed where the final product was exempt from duty. It is in these circumstances that the adjustment permitted by law was made.