TMI Blog2004 (11) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... lso cleared on payment of duty, they reversed an amount equivalent to 8% at the time of clearance of goods cleared at nil rate of duty in view of the fact that they were not able to maintain separate account. This is as per Rule 57AD/57CC [Rule 6 of the present] Central Excise Rules, 1944. However, consequent to the decision of the Hon'ble Supreme Court in case of M/s. Orissa Extrusions v. CCE, Bhubaneswar reported in 2000 (115) E.L.T. 30 (S.C.), the appellants felt that they need not reverse 8% of the sale price. Hence after intimating their decision to the Department they filed refund claim for the amount already debited during March 2000 to June 2000. Future clearances were effected without reversal of 8% of sale price of goods cleared a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the second proviso, the Hon'ble Supreme Court interpreted that as far as the product in Sl. No. 16 is concerned, the condition that the appellants should not avail input credit has not been stipulated. Even if the appellant avails input credit, the product in Sl. No. 16 is entitled for exemption. When the Revenue contended that the appellants will be debarred from availing input credit in view of Rule 57C, the Hon'ble Supreme Court observed as follows : "6. Learned Counsel for the Revenue drew our attention to Rule 57C which states that no credit shall be allowed for duty paid on inputs used in the manufacture of final products which are exempt from the whole of the excise duty leviable thereon or are chargeable to nil rate of duty. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of Rule 57C and it should not be extended to 57AD/57CC/Rule 6 of the Cenvat Credit Rules. 5. We have considered the rival submissions. In a general notification if exemption is allowed for certain goods on condition that input credit is not taken, in respect of the goods where such restriction is not given, the assessee can simultaneously avail the input credit and also clear the goods without payment of duty untouched by the bar of the Rule 57AD/57CC/Rule 6 of the Cenvat Credit Rules. This decision of the Hon'ble Supreme Court is binding on all the quasi judicial authorities. The ratio of the Supreme Court decision is clearly applicable to the present case as the facts are similar. Rule 57AD/57CC/Rule 6 are only extensions of Rule 57 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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