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2019 (6) TMI 362 - AT - Central ExciseCENVAT credit - taxable as well as exempt goods - inclusion of value of clearances of export made by the appellant of the goods for which the exemption under Notification No. 30/2004 has been availed - Rule 6 (6) (v) of the CENVAT Credit Rules, 2004 - HELD THAT:- Rule 6 (6) (v) of the CENVAT Credit Rules, 2004 states that provisions contained in Sub-Rules (1), (2), (3) and (4) of Rule 6 shall not be applicable in case the excisable goods removed without payment of duty are cleared for export under bond in terms of the provisions of the Central Excise Rules, 2002 - Thus, as per Rule 6 (6) (v) of the CENVAT Credit Rules, 2004, when exempted goods are cleared for export under bond, the bar under Rule 6 (1) ibid not to avail credit on common inputs/input services is not applicable - Thus, even if the exempted goods are exported, credit is eligible. Whether the amendment brought forth to do away with the requirement to execute a bond while exporting exempted goods would change the situation? - HELD THAT:- The Tribunal in M/s. Jolly Board Ltd. [2014 (3) TMI 124 - CESTAT MUMBAI] had occasion to consider the issue post amendment vide Notification No. 42/2001. In paragraph 7 of the said judgement, the Tribunal, after referring to the decision in M/s. Repro India Ltd. [2007 (12) TMI 209 - BOMBAY HIGH COURT], has held that the requirement for execution of a bond is only a procedural one and therefore, refund cannot be denied - The credit availed on input services is eligible and the contention of the Department that the credit has to be reversed is against the provisions of law. CENVAT Credit - input contained in the waste - Requirement of including the turnover of yarn waste cleared by the appellant - Department is of the view that the credit on inputs contained in the waste is not eligible and has to be reversed by the appellant - HELD THAT:- Paragraph 3.7 of the Supplementary Instructions issued by the Department after introduction of the CENVAT Credit Rules, 2002 states that credit is admissible on the amount of inputs contained in any waste, refuse or by-product. The argument of the Ld. AR for the Department that the appellants are manufacturing waste cannot be accepted. The appellants are not consciously manufacturing waste and it is merely a refuse or waste which is not dutiable, as held by the Hon’ble Supreme Court in various decisions - The credit on inputs contained in waste is not required to be reversed. Appeal allowed - decided in favor of appellant.
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