TMI Blog2015 (10) TMI 1680X X X X Extracts X X X X X X X X Extracts X X X X ..... iable / exempted goods. 5% / 10% is payable as per Rule 6(3) of the value of the said goods which the appellant has already paid. Therefore, the analogy drawn by the Revenue is totally misconceived that the appellant is required to pay 5% / 10% of the sale price of goods as per Rule 6(3) of the Cenvat Credit Rules 2004. - Appellant is paying 5% / 10% of the value of the goods to the Revenue as per Rule 6(3) and not claiming any deduction of 5% / 10% on the said amount. Therefore, appellant is not required to pay 5% / 10% to the Revenue on the amount recovered from the buyer on account of amount paid to the Revenue as per Rule 6(3) of the Cenvat Credit Rules 2004. In these circumstances, I take support of the decisions in the case of Unison ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules 2004. 20. In fact, the appellant is a manufacturer of dutiable as well as exempted final product. On the final exempted product the appellant is paying 5% / 10% of the value of said goods as per Rule 6 (3) of the Cenvat Credit Rules 2004 to the department and also recovering the said amount from the buyers of the goods. The controversy arose that the amount recovered from the buyers of the goods in addition to the value of the goods i.e. (5% / 10% of value of exempted goods) the appellant is required to pay 5% / 10% on this additional value to the department. Therefore, in nutshell the issue is that whether the appellant is required to pay 5% / 10% of the amount paid as per provision Rules 6 (3) of the Cenvat Credit Rules 2004 reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is manufacturing exempted final product then also value of input is ₹ 50/- (Cenvat Credit availed on input) plus cost of production is ₹ 50/-. The value of goods is ₹ 100/-. Appellant is paying 5% / 10% of this ₹ 100/- to the Department for availment of Cenvat Credit on inputs as per Rule 6 (3). The appellant has recovered 10% from the buyers as per Rule 6(3) ibid, therefore, the Revenue is seeking the appellant is to pay 10% of ₹ 110/- i.e. on the sale price. From the above example, I find that in case of dutiable goods the appellant is charging 100+ duty as applicable rates and in the case of exempted goods the appellant is paying ₹ 100/- + 5% / 10% of ₹ 100/- as per Rule 6(3). The valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this case. 29. In this case, the appellant is paying 5% / 10% of the value of the goods to the Revenue as per Rule 6(3) and not claiming any deduction of 5% / 10% on the said amount. Therefore, appellant is not required to pay 5% / 10% to the Revenue on the amount recovered from the buyer on account of amount paid to the Revenue as per Rule 6(3) of the Cenvat Credit Rules 2004. In these circumstances, I take support of the decisions in the case of Unison Metals Vs. CCE-2006 (204) ELT 323 (T-LB) and in the case of CCE Vs. Kisan Sahkari Chini Mills Ltd.-2001 (132) ELT 523 (SC) to hold that the recovery of 5% / 10% amount from the customer which already stand paid to the Department cannot be held to be liable to be added in the assessable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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