TMI Blog2011 (9) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... ted:- 9-9-2011 - Mr. S.S. Kang, J. Shri D. Nadkarni, Advocate, for appellant Shri V.K. Singh, Authorised Representative (SDR), for respondent Heard both sides. 2. Common issue is involved and therefore the appeals are being taken up together. The appellants filed these appeals against the impugned orders whereby the Commissioner (Appeals) rejected the refund claims filed by the appellants. 3. The brief facts of the case are that the appellants are engaged in the manufacture of stainless steel, aluminium utensils and cutlery. The appellants filed refund claims under Rule 5 of the Cenvat Credit Rules, 2004 in respect of service tax paid on the input services used in or in relation to the manufacture of final product. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laims were rightly considered under Notification 41/2007-ST as the finished goods were exempted from payment of duty. 7. I find that the appellants filed refund claims under Rule 5 of the Cenvat Credit Rules, 2004, which provides as under:- Rule 5. Refund of CENVAT credit. - Where any input or input service is used in the manufacture of final product which is cleared for export under bond or letter of undertaking, as the case may be, or used in the intermediate product cleared for export, or used in providing output service which is exported, the CENVAT credit in respect of the input or input service so used shall be allowed to be utilized by the manufacturer or provider of output service towards payment of, (i) duty of excise o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of goods cleared without payment of duty under the provisions of that rule. 8. A manufacturer is entitled to avail credit in respect of duty paid on inputs used in the manufacture of goods cleared on payment of duty as well as exempted goods. The service tax paid on input services also can be availed as input credit. Rule 6 of the Cenvat Credit Rules provides that in case common inputs or input services are used in the manufacture of exempted or duty paid goods, the manufacturer has to maintain separate records and in the absence of separate records, the manufacturer has to pay 10% of the price of the exempted goods. The rule further provides that the provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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