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2015 (8) TMI 1344 - CESTAT NEW DELHICENVAT credit - manufacture of Printed Plastic Laminates, other Laminated Plastic Pouches, Printed Polypeline Labels etc., falling under Chapter Sub-heading Nos. 39202020, 39239090 and 39269026 repectively of the Central Excise Tariff Act, 1985 - whether the denial of CENVAT credit on the ground that printed plastic laminates are not arising out of any manufacturing process, and as such, duty was not payable on the said product, is justified? - Held that: - The obligation of manufacturer of dutiable and exempted goods is contained in Rule 6 of the Cenvat Credit Rules, 2004. The said Rule is applicable only when both dutiable as well as exempted goods are manufactured in the factory of the manufacturer. In the present case, printed plastic laminates manufactured by the appellant is not confirming to the definition of ‘exempted goods’ as per the definition contained in Rule 2(d) of the said Rules. Since the appellant is engaged only in the manufacture of dutiable goods, I am of the view that the embargo created in Rule 6 of the said Rules regarding payment of 10% of the price of exempted goods shall not be applicable and as such, the duty demand confirmed by the authorities below are not justified - since printed plastic laminates cannot be considered as exempted goods, I am of the considered view that the inputs used in or in relation to manufacture of such exempted product is eligible for the cenvat benefit and the embargo/ stipulation created in Rule 6 of the said Rules will have no application and as such, the appellant is not required to reverse 10% of the total price of printed plastic laminates removed from the factory. Denial of credit not justified - appeal allowed - decided in favor of appellant-assessee.
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