TMI Blog2018 (6) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... avail CENVAT credit paid on the inputs under the exception clause to Rule 6(1), as contained in Rule 6(5) of CENVAT Credit Rules, 2002 and Rule 6(6) of CENVAT Credit Rules, 2004, used in the manufacture of such goods, if the goods are exported. Appeal allowed - decided in favor of appellant. - Appeal No. E/758/2012-Ex - A/62328/2018-EX[DB] - Dated:- 23-3-2018 - Mr. Ashok Jindal, Member (Judicial) And Mr.Anil G.Shakkarwar, Member (Technical) Present for the Appellant:Shri Abhinav Kansal/Veer Singh, Advocates Present for the Respondent: Shri Tarun Kumar, AR PER: ASHOK JINDAL The appellant is in appeal against the impugned order wherein the Cenvat credit has been denied on the inputs used in the export and along wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o imposed under Rule 15 of Cenvat Credit Rules read with Section 11AC of the Act. 3. Ld. Counsel for the appellant submits that in this case the Revenue has alleged that the appellant has utilized inadmissible Cenvat credit taken on inputs (Menthol Flakes) which are used in the manufacture of exempted goods in terms of Rules 11 (3) (iii). It is his contention of the Ld. Counsel that this is a matter of fact on 1.3.2008, the Menthol and Menthol Crystals were only exempted from payment of duty whereas DMO and peppermint oil were still left as excisable. DMO and peppermint oil were later exempted from the duty in February, 2010. Meaning thereby, in March, 2008, the appellant was using menthol flakes in the manufacture of menthol/crystals as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (6) of the Cenvat Credit Rules, 2004. Moreover, as per Rule 6(1) and Rule 11(3) (iii) also takes into account in a situation where the inputs are meant for use exclusively in manufacture of such final product, which become exempted, and do not envisage a special situation like in the instant case, where the common duty paid inputs are received for manufacture of both dutiable as well as exempted goods for export. The provisions of Rule 6(6)(v) are the specific rules, which covers the situation as in the instant case, and thus the Cenvat credit of duty paid on dutiable was correctly held as admissible. Against the said decision, the Revenue filed writ petition no.1850 of 2011 which has been dismissed by the Hon ble Bombay High Court reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also. These show cause notices are pending for adjudication. 5. It is alleged that the respondent is become liable to pay back the Cenvat credit equivalent to the duty paid on all the inputs which were either lying in stock or in the form of work in progress or contained in the exempted finished products lying in stock on 1-3-2008 and the balance was to be lapsed. It was further alleged that the respondent was not entitled to take any further credit, and required the respondent to pay up the entire Cenvat credit availed by it between March, 2008 and July, 2008, on receipt of duty paid goods, irrespective of the fact that the exempted goods manufactured were exported by the respondent. 6. During pendency of the above said show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned finality by the order of Supreme Court, in that circumstance, we hold that the issue is no more res integra. 7. Similar view has been taken by the Hon ble Himachal Pradesh High Court in the case of CCE vs. Drish Shoes Limited-2010 (254) ELT 417 (HP) wherein Hon ble High Court has held that an assessee, manufacturing goods chargeable to nil duty, is eligible to avail CENVAT credit paid on the inputs under the exception clause to Rule 6(1), as contained in Rule 6(5) of CENVAT Credit Rules, 2002 and Rule 6(6) of CENVAT Credit Rules, 2004, used in the manufacture of such goods, if the goods are exported. Admittedly, in the case in hand, the goods which became exempted has been exported by the appellant, therefore, the appellant is not re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
