TMI Blog2020 (4) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... cation No.10/2008 C.E.(N.T.) dated 1.3.2008 which as noticed in the OIO with reference to sale of goods, was deleted and in its place the emphasis was shifted to the payment of an amount equal to 10% of the 'value' of exempted goods - In the absence of any findings to this effect that the provisions prescribed in the relevant Rule with reference to changes brought in Rule 6(3) of Cenvat Credit Rules, 2004 w.e.f. 1.3.2008 have been complied with or not, the dropping of the demand is against the spirit of law. Thus, dropping of the demand is correct only upto February,2008 in terms of Rule 6(3)(b) and demand raised for period March, 2008 onward is required to be examined in terms of changes brought in Rule 6(3)(b) of Cenvat Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apter heading No.2523 of the first schedule to Central Excise Tariff Act, 1985. They also avail the facility of Cenvat Credit on inputs, capital goods and services under Rule 3 of the Cenvat Credit Rules, 2004. 5. The respondent availed Cenvat Credit of duty paid on the explosive used in the excavation of limestone in the limestone mines. A part of the limestone so quarried was utilized by the assessee in the manufacture of the Cement and Cement Clinker that were chargeable to duty. Rest of the limestone excavated was transferred to its sister unit, from the mines itself without payment of duty as the same are chargeable to Nil rate of duty. Thus, the inputs (explosives) were used by the assessee in the manufacture of dutiable product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notices before the Tribunal. 7. The main contention of the counsel for the appellant is that the adjudicating authority as well as the Tribunal failed to appreciate the significant change brought in Rule 6(3) (i) of Cenvat Credit Rules, 2004 w.e.f. 1.3.2008 vide Notification No.10/2008 C.E.(N.T.) dated 1.3.2008. 8. The learned counsel for the respondent supported the order of the authority and the Tribunal. 9. To appreciate the rival submissions of the parties it is apposite to refer the relevant Rule 6 which reads as under :- Rule 6. Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services.- Rule 6(1) ibid provides that Cenvat credit shall not be allowed on such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot examined the provisions as stipulated in Rule 6 of the Rules of 2004 for availing Cenvat Credit on such quantity of input which were used in the exempted goods during the period from March 2008 onwards which are applicable in the present case. In the absence of any findings to this effect that the provisions prescribed in the relevant Rule with reference to changes brought in Rule 6(3) of Cenvat Credit Rules, 2004 w.e.f. 1.3.2008 have been complied with or not, the dropping of the demand is against the spirit of law. 12. Accordingly, dropping of the demand is correct only upto February,2008 in terms of Rule 6(3)(b) and demand raised for period March, 2008 onward is required to be examined in terms of changes brought in Rule 6(3)(b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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