TMI Blog2006 (8) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under the notification is available subject to the conditions specified at Sl. No. 10 of the annexure to the notification. A perusal of condition No. 10 shows that exemption under the notification is available subject to the condition that the manufacturer does not avail of credit of duty (i) on the products mentioned in column 2 of Sl. No.69 of the notification or (ii) on other products manufactured in the same factory. There is no dispute on the point that respondent had not availed of the credit of duty paid on the products mentioned in column 2 i.e. products falling under heading 39.23, 39.24 and 39.26. Exemption has been denied to the respondent on the ground that it was availing of MOD VAT credit on the inputs under Rule 57-A or 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osts. 6. We have perused the record and heard both sides. 7. The dispute is whether the appellant is eligible for exemption under Notification No.5/98-CE dated 2.6.98 in respect of goods produced by it which are classifiable under heading 39.23.90. Relevant entrees in the Notification may be read: S. No . Chapter or . heading No. or Sub- heading No Description of goods Rate Conditions (1) (2) (3) (4) (5) 69. 39.23, (i) Goods of polyurethanes; (ii) insulated ware; and (iii) bags or sacks made out of fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory (emphasis added) The dispute between the parties is as to what is the effect of the bar on the availing of credit placed under the second clause ( or on any other products manufactured in the same factory ) of the above condition. The contention of the assessee is that the bar on taking input credit is only in regard to the products mentioned in Column (2) of the notification and does not extend to other products manufactured in the same factory . As against this, revenue contends that the bar extends to all goods (mentioned in column (2) and any other products) produced in the same factory. 8. The appellant manufactured other items also in the same factory where exempted goods are produced. In regard to the other goods, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit rules specifically provided for a situation where asassessee is manufacturing both exempted and dutiable goods. (Rule 57CC) etc.... The learned Counsel also would contend that the condition relating to other goods relates solely to excluded items falling under heading 39.24. 10. It is well settled that an exemption notification must be given effect to according to its own terms. Particularly, when there is no ambiguity in the meaning of the language used. Therefore, the first requirement is to see the plain meaning of the words used. The prohibition does not avail of credit of duty paid under Rule 57A or 57B applies to both the clauses in the condition, the one relating to goods specified in column (2) and other products. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority is, therefore, directed to re-compute the duty liability after allowing the eligible MODVAT credit. 12. The next claim of the appellant is that the sale price of the goods should be treated as cum-duty price for the purpose of valuation and determination of duty amount. The law on this issue remains settled by the judgment of the Hon'ble Supreme Court in the case of Commissioner of Central Excise, Delhi v. Maruti Udyog Ltd. Therefore, the original authority is directed to re-compute the duty on this base. 13. Yet another submission of the learned Counsel of the appellant is that there is no warrant for imposition of any penalty in the present case, inasmuch as it remains settled that this is not a case involving any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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