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2019 (6) TMI 1616 - AT - Central ExciseCENVAT Credit - manufacture of dutiable as well as exempt goods - scope of 'exempted goods' - reversal of credit in terms of Rule 6 of the Credit Rules - HELD THAT:- The term ‘excisable goods’ has been defined in Section 2(d) of the Central Excise Act to mean the goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of excise and includes salt. We find that the subject goods manufactured by the Appellant are not excisable goods - It is noted that in the case of SAHNI STRIPS & WIRES (P) LTD. VERSUS COMMISSIONER OF C. EX., ROHTAK [2012 (12) TMI 469 - CESTAT, NEW DELHI], wherein the dispute pertained to the period from December 2006 to May 2008 for recovery of 10% of the value of exempted goods as alleged by the Revenue. The credit is not liable to be reversed in view of the provisions as were applicable during the period in dispute. The reversal of credit, if at all, will be applicable for the period post amendment made vide Notification no. 6/2015- C.E.(NT) dated 1st March, 2015 - As per the relevant chapter notes, the goods could not be said to be covered in the schedule to the Central Excise Tariff Act, which is the basic requirement to constitute ‘excisable goods’ as per the definition contained in Section 2(d) of the Act. For something to enjoy exemption under the Cenvat Credit Rules, it should first qualify as ‘excisable goods’ under the said Rules or the Central Excise Act and Central Excise Tariff. Goods that are outside the purview of Central Excise cannot be construed as ‘exempted goods’ for the purpose of this Act. Simply put, something can be exempted only if it was otherwise dutiable under a particular law. Rule 6 of the Cenvat Credit Rules does not find application in the instant case and hence, the Appellant cannot be saddled with the duty demand - matter is being disposed on merits, limitation issue is not considered - appeal allowed.
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