- (1.) This appeal filed by the appellant-revenue under Section 35G of the Central Excise Act, 1944 (for brevity, the Act'), challenges order dated 15-1-2004, passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for brevity, the Tribunal'). It has been claimed that the following substantial question of law would arise for determination of this Court :- "Whether credit of duty is admissible to the inputs in the present case in terms of erstwhile Rule 57C and 57CC of Central Excise Rules, 1944 , used in both dutiable as well as exempted goods when no separate account has been maintained nor 8% duty reversed in respect of clearances of exempted goods?"
(2.) Facts of the case may first be noticed. M/s Super Auto India Ltd., Faridabad (for brevity, the respondent- assessee') is registered with Central Excise Department, having Registration Certificate No. 18/92, dated 19-6- 2002 and engaged in the manufacture of Pressure Die Cast Components that fall under Central Excise Tariff Chapter headings 85 and 87 of the Schedule of the Central Excise Tariff Act, 1985. The respondent-assessee used to manufacture their goods on job work basis under Rule 57F(4) of the Central Excise Rules, 1944 (for brevity, the Rules'). It also used to pay full rate of duty leviable on their final product and to avail facility of Cenvat credit on inputs used in the production of final product.
(3.) On 29-3-2000, the Preventive Officers of the department during the course of scrutiny of Central Excise records found that the respondent-assessee was availing Modvat credit of furnace oil and the same was being used in the production of both their finished/final products as well as in the production of job work articles of others on which Central Excise duty was not paid by them. The ratio of utilization of furnace oil in the production of dutiable and non-dutiable products worked out to be 39.04% : 60.96%. The goods were produced using said furnace oil on job work basis and cleared without payment of duty and without reversing proportionate amount of Cenvat credit in terms of Rule 57CC/57AD of the Rules. The respondent-assessee was issued two demand show cause notices dated 31-3-2000, raising demand of Central Excise duty of Rs. 4,33,040/- and Rs. 5,33,561.32 paise, under Rule 57-I/57AH and Rule 9(2) of the Rules read with Section 11A of the Act. The aforementioned demands were confirmed and penalty of Rs. 1,00,000/- in each case was also imposed, vide orders-in-original dated 28-2-2002, passed by the Deputy Commissioner, Central Excise Division-IV, Faridabad-cum-Adjudicating Authority (P-1 & P-2 respectively).;