LAXMI CEMENT Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both the sides.

(2.) THE Appellants had filed this appeal against the Adjudication Order passed by the Commissioner of Central Excise. The Appellants are engaged in the manufacture of cement and clinker and were availing the Modvat credit in respect of explosives used in their mines. A show cause notice was issued to the Appellants to recover an amount of 8% under Rule 57CC of Central Excise Rules on the value of limestone cleared to their other unit without payment of duty. The demand was made on the ground that the Appellants were availing the Credit of duty paid on explosives used for getting limestone which were cleared without payment of duty.

(3.) THE contention of the Appellants is that they had already reversed the Credit taken on the duty paid on explosives, therefore, demand is not sustainable. The Appellants relied upon the Circular issued by the Govt. of India dated 16 -10 -2001. He submits that where a manufacturer in manufacturing excisable goods as well as exempted goods and were maintaining a separate record in respect of inputs used in the manufacture of exempted goods the manufacturer has to reverse the Credit taken on the inputs used in the manufacturer of exempted goods. The Appellants also relied upon the Larger Bench decision of the Tribunal in the case of Indian Iron and Steel Co. [2002 (143) E.L.T. 442 (Tri.) - 2002 (51) RLT 154] wherein the Tribunal after relying upon the above mentioned Circular remanded the matter to the Adjudicating Authority for deciding the matter afresh.