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2015 (9) TMI 403 - HC - Central ExciseCenvat Credit - export of tractors - duty was paid on captive consumption of parts where the parts were exempted unconditionally - revenue contended that appellants were not required to pay duty on the aggregate parts and are therefore, not entitled to take credit of the duty so paid? - Sr. No. 92 of Notification No. 6/2006-C.E. - Scope of Section 5A(1A) of Central Excise Act, 1944 - Held that:- Though the aggregates are exempted from duty, the assessees are paying duty on the aggregates used for manufacture of tractors cleared for export. They are paying this duty and, then, claiming drawback though the duty is not chargeable at all on the aggregates. There is substance in the contention that when the Column No. 3 describes in clear terms that all goods except road tractors for semi-trailers of engine capacity more than 1800 CC and Sr. No. 92 clarifies for parts, used within the factory of production for manufacture of goods of Heading 8701 shall carry Nil rate of duty but both Sr. Nos. 40 and 92 in the subject Notification do not refer to any condition, then, it is not possible to accept the arguments of Mr. Sridharan that the exemption is not absolute but conditional. Once we have taken the above view, then, it is not necessary to refer to other judgments relied upon by Mr. Sridharan with regard to interpretation of exemption notifications. It is only when the exemption claimed is conditional or that two views are possible on a reading of the exemption notification that these judgments can have any application. These judgments also, therefore, do not assist the assessees-appellants. Writ petitions failed - That bifurcation made by the Tribunal is in clear terms traceable to the above Rules. Hence, the Tribunal’s order confirming the demand partially does not require any interference. The grounds which have been taken in these Writ Petitions and the Central Excise Appeals are based on the option to pay duty on the tractor parts consumed within the factory of production for manufacture of tractors exported under bond. However, that option itself is not available in view of the language of Section 5A(1A) and the Cenvat Credit Rules. In these circumstances, we do not find any fault in the orders passed by the Central Government and that of the Tribunal. - Decided against the assessee.
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