TMI Blog2011 (1) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... 187 of 2010 - - - Dated:- 4-1-2011 - Adarsh Kumar Goel and Ajay Kumar Mittal, JJ Sukhdev Sharma, Standing Counsel for the Appellant/Revenue Adarsh Kumar Goel, J 1. This appeal has been preferred by the revenue under Section 35G of the Central Excise Act, 1944 (for short, "the Act") against the order of the Customs, Excise and Service Tax Appellate Tribunal, New Delhi dated 21.1.2010 proposing to raise following substantial questions of law:- (i) "Whether goods cleared without payment of duty under notification No.214/86-CE dated 25.03.86 are not 'exempted goods' as mentioned in the Rule 6 of the Cenvat Credit Rules 2004? (ii) Whether provision of Rule 6 of the Cenvat Credit Rules 2004 regarding disallowance of Cenvat Credit on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al and show cause notice issued ignoring this position merits to be set aside. 6.6 The Commissioner (Appeals), Central Excise Commissionerate, Ludhiana has already in an another case of the Noticees relating to earlier periods allowed their appeals vide Order in Appeal No.350-351/CE/Appl/Ldh/04 dated 19.04.2004 (copy enclosed) and set aside the orders-in-original demanding reversal of credit. The same view is also taken in the case of Modi Sales, Ludhiana vide Order-in-appeal No.139/CE/CHD/06 dated 27.02.06. In the case of Modi Sales, their earlier order-in-original on the same issue has already been accepted by the department as mentioned in this order-inappeal. In addition to this, the Ld. Assistant Commissioner, Central Excise Division ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the whole purpose of the notification and the Rules is to streamline the process of payment of duty and to prevent the cascading effect if duty is levied both on the inputs and the finished goods. Rule 57-D(2), which has been extracted hereinabove, shows that in the manufacture of a final product an intermediate product may also come into existence. Thus in cases where an intermediate product comes into existence, even though no duty has been paid on the intermediate product as it is exempted from whole of the duty or is chargeable to nil rate of duty, credit would still be allowed so long as duty is paid on the final product. 9. In cases of manufacturers like the appellants, the final product is the tractor. The intermediate product wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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