Alembic Ltd vs Vadodara-I on 23 October, 2018
In fact, this Bench in the case of Sri Ramachandra
Paper Boards v. Commissioner of Central Excise, Visakhapatnam
[2007 (218) E.L.T. 386 (Tri. - Bang.)] has held that there is no
stipulation in the rules that the inputs used in both exempted and
dutiable products should be stored separately. In these
circumstances the demand of 8%/10% of the value of the
exempted products is not at all justified. Further on going through
the records, we find that the Appellants had kept the Department
informed of the practice adopted by them. Therefore there is no
justification for invocation of longer period and imposition of
mandatory penalty."