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2018 (10) TMI 219 - AT - Service TaxRefund of Service tax paid - Transportation of Goods by Road Services - rejection on the ground that the goods manufactured and exported by them were exempted from payment of excise duty by virtue of N/N. 4/2006 CE dated 01.03.2006 and in terms of Rule 6(1) of Cenvat Credit Rules they were barred from availing the cenvat credit. Held that:- The Commissioner (Appeals) has rightly held that the respondents are entitled to cenvat credit and there is no provisions contained in Rule 6(1) of the Cenvat Credit Rules when the final product is exempted from Central Excise duty by virtue of Notification 4/2006 CE dated 01.03.2006 - the Commissioner (Appeals) has relied upon various decisions which have consistently held that the assessee is entitled to avail credit of service tax paid on input services when they are producing exempted excisable goods which are chargeable to ‘nil’ rate of duty. The Hon’ble Karnataka High Court in the case of Commissioner of Customs Vs. ANZ International [2008 (6) TMI 155 - KARNATAKA HIGH COURT] has held that the provisions of Rule 6 of Cenvat Credit Rules are not applicable when the goods are exported under bond. There is no infirmity in the impugned order passed by the Commissioner (Appeals) based on the decision of the High Court - appeal dismissed - decided against Revenue.
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