2019 (2) TMI 2032 - HC - Central Excise

CENVAT Credit - capital goods which have been used exclusively for manufacture of exempted goods when Rule 6(4) of Cenvat Credit Rules, 2004 - capital goods which are used exclusively for manufacture of exempted goods, in terms of provisions of Rule 6(6)(v) of Cenvat Credit Rules when the assessee has availed the benefit of exemption Notification No. 30/2004-C.E., dated 9-7-2004 as well as higher drawback available on such exported goods - capital goods which were used exclusively for manufacture of exempted goods which are exported claiming higher drawback under category A as it will tantamount to allowing Cenvat credit on those capital goods which is not permissible in terms of Rule 6(4) of Cenvat Credit Rules, 2004. The substantial questions of law as mentioned arise for consideration of this Court in the present appeal. HELD THAT - Issue Notice.

Summary

The High Court of Rajasthan considered the following substantial questions of law in an appeal:

1. Whether the assessee can claim Cenvat credit on capital goods used exclusively for manufacturing exempted goods despite Rule 6(4) debarring such credit.
2. Whether the assessee can avail Cenvat credit on capital goods used exclusively for manufacturing exempted goods under Rule 6(6)(v) when benefiting from exemption Notification No. 30/2004-C.E. and higher drawback on exported goods.
3. Whether the assessee can claim Cenvat credit on capital goods used for manufacturing exempted goods exported under category 'A', considering Rule 6(4) prohibits such credit.

The Court admitted the case and issued notice.