Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 493 - AT - Central ExciseRule 6(3) of the Cenvat Credit Rules, 2004(CCR) - Whether the appellant is required to pay 10% amount when common inputs are used in the manufacture of finished goods which are exempted as well as dutiable - Manufacture of Garden Rakes, Forks, Box Hinges fully exempted as per Notification No.5/2006-CE dated 01.03.2006 unconditionally. Held that:- as per Rule 6(1)ibid, no credit shall be admissible in relation to manufacture of exempted goods. It has not been denied by the appellant that the goods manufactured by them are not unconditionally exempted. Simply by paying duty on exempted goods does not make the goods dutiable. As per the provisions contained in Section 5A of Central Excise Act, 1944, when there is an unconditional exemption Notification then an assessee/manufacturer shall not pay duty of excise on such exempted goods. Further as per Rule 6(3) of the Cenvat Credit Rules, 2004 when any common inputs are used in the manufacture of dutiable and exempted goods then appellant is required to pay an amount equivalent to 10% on the value of exempted goods as demanded by the Department. So far as the provisions contained in Rule 6(6) of Cenvat Credit Rules, 2004 are concerned, the case of the appellant is that even exempted goods are excisable goods, therefore, amount under Rule 6(3) cannot be denied if the goods are cleared without payment of duty. However, it is observed that as per provisions of Rule 6(6)(v) of Cenvat Credit Rules, 2004, amount is not required to be paid under Rule 6(3) when goods are removed without payment of duty for export under bond in terms of provisions of Central Excise Rules, 2002. In the case of theappellant, the goods were not exported under bond, but were cleared on payment of duty, therefore, First Appellate Authority was fully justified in dismissing the Appeal filed by the appellant and this Bench does not find any justification in interfering with the same. - Decided against the appellant
|