TMI Blog2016 (4) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... ods dutiable. As per the provisions contained in Section 5A of Central Excise Act, 1944, when there is an unconditional exemption Notification then an assessee/manufacturer shall not pay duty of excise on such exempted goods. Further as per Rule 6(3) of the Cenvat Credit Rules, 2004 when any common inputs are used in the manufacture of dutiable and exempted goods then appellant is required to pay an amount equivalent to 10% on the value of exempted goods as demanded by the Department. So far as the provisions contained in Rule 6(6) of Cenvat Credit Rules, 2004 are concerned, the case of the appellant is that even exempted goods are excisable goods, therefore, amount under Rule 6(3) cannot be denied if the goods are cleared without payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od July, 2006 to September, 2006 Appellant paid duty on the above goods and exported the same under claim of rebate. That department did not take any objection to the payment of duty and claim of rebate by the Appellant. That subsequently it was observed by the department that the goods manufactured by the Appellant were fully exempted and chargeable to Nil rate of duty under Notification No.5/2006-CE dated 01.03.2006. The department demanded 10% amount under Rule 6(3) of the Cenvat Credit Rules, 2004 for using common inputs for manufacturing excisable goods and exempted goods. It is the case of the Appellant that once as well as cleared on payment of duty then the same cannot be considered as exempted goods under Rule 6(1) of Cenvat Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon case laws are thus not applicable to the facts of the present case. It was strongly argued by the Ld.AR that suo motu payment of duty does not make the goods dutiable and as per the provisions contained in Section 5A of the Central Excise Act, 1944 an assessee has no option but to avail of an exemption notification. The Ld.AR, therefore, strongly defended Order-in-Appeal dated 15.09.2011 passed by the First Appellate Authority. 4. Heard both sides and perused the case records. The issue involved in the present Appeal is whether the Appellant is required to pay 10% amount in view of Rule 6(3) of the Cenvat Credit Rules, 2004(CCR) when common inputs are used in the manufacture of finished goods which are exempted as well as dutiable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when any common inputs are used in the manufacture of dutiable and exempted goods then Appellant is required to pay an amount equivalent to 10% on the value of exempted goods as demanded by the Department. So far as the provisions contained in Rule 6(6) of Cenvat Credit Rules, 2004 are concerned, the case of the Appellant is that even exempted goods are excisable goods, therefore, amount under Rule 6(3) cannot be denied if the goods are cleared without payment of duty. However, it is observed that as per provisions of Rule 6(6)(v) of Cenvat Credit Rules, 2004, amount is not required to be paid under Rule 6(3) when goods are removed without payment of duty for export under bond in terms of provisions of Central Excise Rules, 2002. In the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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