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2015 (10) TMI 1219 - AT - Central ExciseDisallowance of CENVAT Credit - Input used in export of exempted product - Held that:- In the case of Drish Shoes Ltd (2010 (5) TMI 334 - HIMACHAL PRADESH HIGH COURT ), the question before the Hon'ble Himachal Pradesh High Court was whether an assessee exclusively manufacturing wholly exempted goods chargeable to Nil tariff rate of duty is eligible to avail CENVAT Credit of duty paid on said inputs and input services under Rule 6(1) of the CENVAT Credit Rules, 2002/CENVAT Credit Rules, 2004, used in the manufacture of such exempted goods, even if such goods are exported. The Hon'ble High Court held that an assessee manufacturing the goods chargeable to Nil duty, is eligible to avail CENVAT Credit paid on the inputs under the exception clause to Rule 6 (1) as contained in Rule 6(5) of CENVAT Credit Rules 2002 and Rule 6(6) of CENVAT Credit Rules 2004, used in the manufacture of such goods, if the goods are exported - there is no dispute that the entire goods were exported. Hence, there is no reason to deny the CENVAT Credit to the Appellant. Accordingly, the impugned order is set aside - Decided in favour of assessee.
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