TMI Blog2015 (7) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... the same have been used in or in relation to manufacture of final product which have been cleared at nil rate of duty or have been cleared without payment of duty like clearances for export under bond, supplies 100% EOU/SEZ units etc. There is nothing in this sub rule form which it can be inferred that clause-(vii) is applicable to the goods imported into India. In our view, the Review order passed by two senior Chief Commissioners is an absurd order passed with absolutely no application of mind and as such there is absolutely no merit in this appeal filed by the Revenue. - decided against Revenue. - Excise Appeal No. E/716/2008 -Ex[DB] - FINAL ORDER NO. 51682 /2015-Ex (Br) - Dated:- 6-5-2015 - Rakesh Kumar, Member (T) And S K Mohanty, Member (J),JJ. For the Appellant : Mr MS Negi, DR For the Respondent : Mr Rupesh Kumar, Adv ORDER Per Rakesh Kumar (for the Bench): The facts leading to filing of this appeal are, in brief, as under: 1.1 The respondent Bharat Heavy Electricals Ltd. are manufacture Steam Turbine, Hydraulic Turbine, Gas Turbine, Electric Generator Sets, Motors, Panels and Condensers. The period of dispute in this case is from April 2006 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s supplied against international competitive bidding at nil rate of duty under exemption notification no. 6/06-CE dated 1/03/2006. The Commissioner in this order has rejected the Departments view that clause-(vii) of Rule 6(6) is not applicable to the goods manufactured in India and is applicable only to the imported goods. The above order of the Commissioner was reviewed under section 35E(1) of the Central Excise Act, 1944 by the Committee of Chief Commissioners and the Committee of Chief Commissioners vide order dated 19.03.2008 directed the Commissioner to file an application before the Tribunal under section 35E(4) of the Central Excise Act, 1944, for correct determination of the points arising out of the order as mentioned in the review order. The point to be referred to the Tribunal for decision is whether the Tribunal should set aside the order-in-original No. 67/Commr/MRT-I/07 dated 26.12.2007 and confirm the demand, interest thereon and impose penalty as proposed in the SCN. In pursuance of the above order passed by the Committee out of Chief Commissioners under section 35(E)(1), the Commissioner filed an application before the Tribunal which has been treated as an appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d against international competitive bidding in terms of notification no. 6/06-CE dated 1.3.2006, that Rule 6(6) is in respect of the goods manufactured in India which have been removed at nil rate of duty, that the Departments contention that clause (vii) of Rule 6(6) is applicable only in respect of imported goods is absurd as from the language of sub Rule (6) of Rule 6 it is clear that this sub Rule is in respect of the excisable goods removed without payment of duty and hence this sub rule is only in respect of the excisable goods which have been manufactured in India and have been removed at nil rate of duty, that the wordings in clause (vii) of sub rule 6 only reproduce the conditions for full duty exemption under notification no. 6/06-CE in respect of the goods supplied against International Competitive Bidding and there is nothing in the language of clause (vii) of Rule 6(6) form which it can be inferred that this clause is applicable only to the imported goods and not to the goods produced or manufactured in India, that question of payment of excise duty and exemption notification no. 6/06-CE would arise only if the goods cleared and supplied against international competi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of the exempted final product. However, sub rule 6 exempts a manufacturer from the provisions of sub rule (1),(2),(3) (4) in certain situations. In this regard, the relevant part of sub rule 6 of Rule 6 is reproduced below: (6) The provisions of sub rule (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty and either._ (i) Cleared to a unit of special economic zone; or (ii) Cleared to a 100% Export Oriented undertaking; or (vii) all goods which are exempt from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under section 3 of the said Customs Tariff Act when imported into India and supplied against International Competitive Bidding in terms of notification No. 6/2002-Central Excise dated the 1st March, 2002 or notification No. 6/2006-Central Excise dated the 1st March, 2006, as the case may be From plain reading of sub rule 6 it is clear that the provisions of sub rule (1),(2),(3) (4) would not be applicable in case the excisable goods removed without payment of duty are the goods which if imported into India are exempt ..... 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