TMI Blog2009 (12) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... quest was disallowed for the reason that LUT is to be furnished to the respondent to safeguard the revenue in the event of failure of export. In the case of the respondents, the product manufactured by the respondent is exempted vide notification no. 6/2006 and as per the Cenvat Credit Rules 6(6)(i) the Cenvat credit shall not be allowed on such quantity of inputs which is used in the manufacture of exported goods. The respondent preferred an appeal before the Commissioner(Appeals) who allowed the same. Being aggrieved with the order, the Revenue is in appeal before me. 2. The main contention of the Revenue is that the appellate authority has erred in arriving at the decision that Cesses being duties of excise, tractors are not exempted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Rule 57C of erstwhile Central Excise Rules, 1944, has held that it provides in mandatory and categorical terms that no credit of specified duty paid on the inputs used in the manufacture of final product shall be allowed if the final product is exempted from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty. Similar view has been held by the Hon'ble High Court of Andhra Pradesh in the case of Ganesh Metal Processing Industries vs. Union of India reported in 1996 (81) ELT 11 (AP) that once there is such an exemption notification or provisions giving full exemption, there is no scope to take credit of duty paid on the inputs under rule 57A and other allied provisions. Applying the same ratio since th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether Cenvat credit can be allowed on such inputs which are contained in the exempted export goods. She further submitted that as regards the availability of Cenvat credit on exempted goods is concerned, the conditions enumerated under various sub rule of Rule 6 of CCR, 2002. It is explicitly mentioned that the provisions of sub Rule (1), (2), (3) and (4) shall not be applicable in the case of excisable goods removed without payment of duty or either cleared for export under Bond/LUT in terms of the provisions of the CER, 2002 etc. The Rule 6(6)(i) does not find relevancy in the matter. She further submitted that Rule 6(6)(v) of Cenvat Credit Rules, 2004 is applicable to her case. The object of the Government to promote export and not to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty. The intention is not to export taxes but only to export the goods. If the inputs like engine going into the manufacture of export commodity namely tractors are subject to excise duty, the Indian manufacturer of tractors becomes internationally uncompetitive. This appears to be the object behind the Government enacting special scheme to ensure that the duty is not levied even on inputs going to the export products. Rule 6(6)(v) has been consciously and expressly enacted with the specific objective to ensure that duty is not levied even on inputs going to the export products. This method of adjustment, both from the point of Government and the assessee is to allow the assessee to take Cenvat credit on the inputs used in the export ..... X X X X Extracts X X X X X X X X Extracts X X X X
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