9911796707
TMI Blog2023 (6) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... g CENVAT credit; during the course of conduct of an Audit, it appeared to the Department that the appellants are manufacturing and exporting medicaments, some of which are non-excisable, some excisable and some other are exempted from duty when cleared for home consumption and that the respondents neither reversed any CENVAT credit involved on the inputs/raw materials used in the manufacture of non-excisable goods nor paid amount equal to 10% of the value of the goods cleared for export under bond/LUT. A show cause notice dated 03.05.2011 was issued to the respondents. Adjudicating Authority vide order cited above has dropped the proceedings initiated vide above cited show cause notice. The order was reviewed by the Committee of Chief Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UT. Learned Counsel for the respondent submits that the issue is no longer res integra being decided by the Hon'ble Bombay High Court in the case of Repro India (supra). We find that Hon'ble High Court observes, after analysing the provisions of Rule 6(5) of CENVAT Credit Rules, 2004 that: Para 9 ---- A perusal of the aforesaid Rules would clearly show that subrule (i) to (vi) are identical and the difference in Rule 6(6) of the Cenvat Credit Rules, 2004 and Rule 6(5) of the Cenvat Credit Rules, 2002 is not relevant for the purpose of the present case. Rule 6(1), 6(2), 6(3) and 6(4) of the Cenvat Credit Rules under Cenvat Credit Rules, 2002 as well as under the Cenvat Credit Rules, 2004 remains the same. As noted earlier the object and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e up before the Hon'ble High Court in the case of Drish Shoes Ltd. (supra) wherein the facts were the assessee were manufacturers of finished leather and finished leather was exported. After export they claimed refund on account of CENVAT credit paid on inputs, which were purchased for finishing the export goods. Refund was sought to be denied under provisions of Rules 5 and 6 of CENVAT Credit Rules, 2002. Thereafter the Hon'ble High Court examined the issue and held as under: "16. The Scheme of CENVAT Credit Rules, 2002, as also 2004, reference to the relevant provisions of which has been made hereinabove, shows that CENVAT credit/refund is allowed on the inputs of all manufactured goods which are not exempt from duty, as is cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit Rules, 2004, has held that expression "excisable goods" is wider than the expression "exempted goods, as it includes both dutiable as also exempted goods. 20. In view of the above discussion, we hold 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 6(5) of CENVAT Credit Rules, 2002 and Rule 6(6) CENVAT Credit Rules, 2004, used in the manufacture of such goods, if the goods are exported Question No. 1 is answered accordingly. 21. As regards question No. 2, it is clear from a bare reading of rule 5 of CENVAT Credit Rules, 2004 that a manufacturer, who exports the final products which are exempt from duty, can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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