TMI Blog2018 (7) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... ing as on 31.3.2010 would lapse and is inadmissible to the appellant in the year 2010-11. In Clause- 2(d)(iii) of the Notification 08/2003, a specific condition has been prescribed that manufacturer cannot avail CENVAT Credit on inputs used in the manufacture of specified goods up to the aggregate value of first clearance not exceeding ₹ 150.00 Lakhs. Therefore, non-compliance of the same would result in inadmissibility of the credit, on the inputs even though the appellant had complied with the Rule 6(3) of CENVAT Credit Rules, 2004 - it is found that the department while denying the said credit adjusted the amount paid under Rule 6(3) of CENVAT Credit Rules. Thus, the appellant are not entitled to CENVAT Credit both the amounts i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n adjudication, it was confirmed with interest and penalty. Aggrieved by the said order, they filed appeal before Ld. Commissioner (Appeals), who inturn rejected the Appeal, hence, the present Appeal. 3. Ld. Chartered Accountant for the appellant submits that they had availed SSI Exemption under Notification 8/2003-CE dated 01/03/2003 on the aggregate value of clearance of ₹ 150.00 Lakhs of specified goods during the Financial Year 2009-10 as admissible under the said Notification. Also, since they manufactured branded goods for others, they paid duty on the same. It is their contention that since they were utilizing common inputs in the manufacture of their own exempted goods and also in the manufacture of dutiable branded goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le goods and avail benefit of SSI exemption under Notification 08/2003CE dt.31.3.2003 for the first aggregate clearance of ₹ 150.00lakhs . Also, they have manufactured excisable goods affixing the brand name of others for which the said exemption Notification was not availed and duty was paid by them. Also, it is not in dispute that they availed credit on the common inputs used in the manufacture of their own goods on which they claim SSI Exemption and, also on the branded goods cleared on payment of duty. The contention of the department is that since the appellant was availing value based exemption, therefore, the credit lying in balance as on 31/03/2010 would lapse in accordance with Rule 11(2) of CENVAT Credit Rules, 2004. The sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of Rule 6(3) of CENVAT Credit Rules, 2004 hence, the credit cannot be denied to them even though the inputs used in the manufacture of goods up to the value of ₹ 150.00 Lakhs, had been exempted. 7. Clause- 2(d)(iii) of the Notification 08/2003 reads as follows: (iii) the manufacturer shall not avail the credit of duty on inputs under rule 3 or rule 11 of the CENVAT Credit Rules, 2002 (herein after referred to as the said rules), paid on inputs used in the manufacture of the specified goods cleared for home consumption, the aggregate value of first clearances of which, as calculated in the manner specified in the said Table does not exceed rupees one hundred lakhs; In the aforesaid Provision, a specific condition has be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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