TMI Blog2019 (6) TMI 1616X X X X Extracts X X X X X X X X Extracts X X X X ..... erein the dispute pertained to the period from December 2006 to May 2008 for recovery of 10% of the value of exempted goods as alleged by the Revenue. The credit is not liable to be reversed in view of the provisions as were applicable during the period in dispute. The reversal of credit, if at all, will be applicable for the period post amendment made vide Notification no. 6/2015- C.E.(NT) dated 1st March, 2015 - As per the relevant chapter notes, the goods could not be said to be covered in the schedule to the Central Excise Tariff Act, which is the basic requirement to constitute excisable goods as per the definition contained in Section 2(d) of the Act. For something to enjoy exemption under the Cenvat Credit Rules, it should firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso to Rule 6(3)(i) of the aforesaid Rules since the Appellant is manufacturing dutiable as well as exempted goods. The non-excisable goods which are manufactured by the Appellant are goods manufactured with the use of alcohol which is outside the purview of central excise but is subject to levy of state excise. 3. The Ld. C.A. for the Appellant submitted that the subject goods cannot be said to be excisable goods and hence, not exempted goods within the meaning of the Cenvat Credit Rules. He submitted that the said goods are specifically excluded from the purview of Central Excise Tariff Act, as stated in Note no. 5 and Note no. 1(d) of the Chapter 30 and 33. The said goods are covered under the Medicinal and Toilet Preparations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5. He also pointed out to the amendment made in the Credit Rules in March 2015, i.e. subsequent to the period in dispute, vide Notification no. 6/2015- C.E.(NT) dated 1st March, 2015 whereby Explanation has been added to provide that even the non-excisable goods would be treated as exempted goods for the purpose of availment and reversal of credit as per the Credit Rules. He submitted that this Tribunal in the cases of CCE Ranchi vs. Parial Hydrocarbons Chemicals Pvt Ltd [2016 (4) TMI 1335] and Sathavahana Ispat Ltd vs. Tirupati GST [2019 (3) TMI 100] has already held that the above amendment will only be considered as prospective in nature and not retrospective. Therefore, the subject goods would not be treated as exempted goods i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f excise leviable thereon, and includes goods which are chargeable to Nil rate of duty. 10. The term excisable goods has been defined in Section 2(d) of the Central Excise Act to mean the goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of excise and includes salt. We find that the subject goods manufactured by the Appellant are not excisable goods. We take note of the decision in the case of Sahni Strips Wires (P) Ltd. vs. CCE, Rohtak [2012 (283) ELT 418 (Tri-Del)], wherein the dispute pertained to the period from December 2006 to May 2008 for recovery of 10% of the value of exempted goods as alleged by the Revenue. In the said case, this Tribunal obse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of Rule 6(3) of Cenvat Credit Rules, 2004 remains the same , is incorrect 11. Thus the issue involved herein is no longer res-integra. We are satisfied that the credit is not liable to be reversed in view of the provisions as were applicable during the period in dispute. The reversal of credit, if at all, will be applicable for the period post amendment made vide Notification no. 6/2015- C.E.(NT) dated 1st March, 2015. 12. We have perused the finding in the impugned order wherein it has been observed that since the goods are capable of being sold, the goods would be said to be marketable and accordingly, excisable and since the said goods did not attract central excise duty, the same will be construed to be exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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