Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 367 - AT - Central ExciseCENVAT Credit - inputs used commonly in the manufacture of excisable goods, exempted goods and non-excisable goods - amount of 10% of the value of the exempted goods paid but no payment in case of non-excisable goods manufactured and exported by them under bond/LUT - Rule 6(5) of CENVAT Credit Rules, 2004 - HELD THAT:- The issue is no longer res integra being decided by the Hon’ble Bombay High Court in the case of Repro India [2007 (12) TMI 209 - BOMBAY HIGH COURT] where it was held that As noted earlier the object and purpose of Rule 6(6) of Cenvat Credit Rules, 2004 is to promote the policy of the Government that the benefit of duty paid on input is available as credit in respect of certain exempted goods as well as the exempted goods exported under bond. The minor change in the wordings of Rule 6(6) of the Cenvat Credit Rules, 2004 by using the term "excisable goods" instead of exempted goods is that the term 'exempted goods' may not cover the dutiable goods which are exported under bond. Therefore, in order to widen and cover both dutiable and exempted goods exported under bond, Rule 6(6) of Cenvat Credit Rules, 2004 uses the expression "excisable goods". Hon’ble High Court of Himachal Pradesh in the case of COMMISSIONER OF CENTRAL EXCISE VERSUS DRISH SHOES LTD. [2010 (5) TMI 334 - HIMACHAL PRADESH HIGH COURT] has held that an assessee, manufacturing 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 6(5) of CENVAT Credit Rules, 2002 and Rule 6(6) CENVAT Credit Rules, 2004, used in the manufacture of such goods, if the goods are exported. The High Courts and Tribunal have been consistent in holding that credit of inputs used in exempted goods exported under bond/LUT or otherwise cannot be denied to the assessee in terms of Rule 6(6)(v) of Cenvat Credit Rules. 2004 and that it is not the intention of the Government to export Taxes. Further, we find that the situation would not alter even if non-excisable goods are manufactured by using dutiable inputs and are subsequently exported. Appeal not maintainable and is dismissed.
|