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2018 (2) TMI 926

are not entitled to cenvat credit on input/input services used for manufacturing of exempted goods - Held that: - identical issue decided in the case of JOLLY BOARD LTD Versus COMMISSIONER OF CENTRAL EXCISE [2014 (3) TMI 124 - CESTAT MUMBAI], where it was held that CENVAT credit used in the manufacture of final product being exported irrespective of the fact that final product are otherwise exempted by provisions of Rule 6(6)(v) of the CENVAT Credit Rules, 2004 are applicable - refund allowed - appeal dismissed - decided against Revenue. - ST/21118/2014-SM, ST/21119/2014-SM, ST/21120/2014-SM, ST/21121/2014-SM, ST/21122/2014-DB, ST/21123/2014-SM - 22726 - 22731 / 2017 - Dated:- 26-10-2017 - SHRI ASHOK JINDAL, JUDICIAL MEMBER Shri Naveen K, J .....

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he Hon ble High Court of Himachal Pradesh in the case of Drish Shoes Ltd. - 2010 (254) E.L.T. 417 (H.P) has been challenged before the Hon ble Apex Court and same is pending before Hon ble Apex Court. 5. I have gone through the case records and find that the identical issue came up before this Tribunal in the case of Jolly Board Ltd. reported in 2017 (49) S.T.R. 620 (Bom.) wherein this Tribunal examined the issue and observed as under: 5. In this case the appellant has procured inputs/input service on payment of duty which were gone in the manufacturing of exempted goods which were exported by the appellant. These facts are not in dispute. The intent of the legislation is not in dispute that the taxes are not to be exported. The same issue .....

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1) of Rule 6 of the CENVAT Credit Rules, 2002, as also the 2004, so as to avoid indirect double taxation on inputs. However, this rule is not absolute. It is subject to exception clause, contained in Rule 6(5) of the 2002 and 6(6) of the Rules of 2004, and one of the exceptions is in respect of excisable goods, which are cleared for export under bond in terms of the provisions of Central Excise Rules, 2002. 17. Sub rule (5) of Rule 6 of the Rules of 2002 was applicable only in case of exempted goods. That meant that the exception was not applicable in case of dutiable goods. It appears that this led to anomalous situations. For example, if the goods were dutiable and were exported, credit for CENVAT could not be claimed in respect of input .....

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pellant. 7.The issue came up before the Hon ble High Court of Bombay in Repro India Ltd. (supra) wherein the Hon ble High Court held that CENVAT credit used in the manufacture of final product being exported irrespective of the fact that final product are otherwise exempted by provisions of Rule 6(6)(v) of the CENVAT Credit Rules, 2004 are applicable. Further, I find that in the case of Salzer Controls Ltd. - 2003 (160) E.L.T. 1169 and Paras Ship Breakers Ltd. this Tribunal has held that non-execution of bonds are only technical lapse. Further, in the case of Well Known Polyester Ltd. (supra) wherein the exempted goods were exported without bond or LUT by an assessee who was not even registered without bond or LUT by an assessee who was not .....

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