2009 (6) TMI 440

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..... Appeals) upheld the action of the original authority. But the Tribunal in the light of the decision of CCE v. Drish Shoes Ltd. 2009 (90) RLT 686 (Delhi - CESTAT); held that-inputs used in manufacture of exempted final product which is exported, input credit and its refund are admissible under rule 5 and 6 of Cenvat Credit Rule 2004, thus the impugned order is set-aside and appeals are allowed with consequential relief.
P.K. DAS, JUDICIAL MEMBER O.P. Agarwal for the Appellant. R.K. Saini for the Respondent ORDER 1. Since common issue involved in these appeals, therefore, both the appeals are being taken up together for disposal. 2. The relevant facts of the case, in brief, are that the appellants were engaged in the manufacture of Psy .....

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..... International 2009 (90) RLT 586 (Kar.); (c) CCE v. Drish Shoes Ltd. 2009 (90) RLT 686 (Delhi - CESTAT); (d) CCE v. Sunny Exports [Final Order No. 402/2007-Ex, dated 17-8-2007] (Delhi - CESTAT). 4. Learned D.R. reiterates the findings of the Commissioner (Appeals). He submits that admittedly the exported goods are exempted from duty and, therefore, there is no requirement for furnishing bond. Hence, rebate claim is not permitted under rule 6(1) of Cenvat Credit Rules. 5. After hearing both sides and on perusal of the records, I find that the findings of the Commissioner (Appeals) is that the appellants availed Cenvat Credit on inputs services used in or in relation to manufacture of unconditionally exempted goods. Rule 6(1) of Cenvat Cr .....

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..... tion dated 31-3-2003. Rule 6(6)(iv) relates to supplies to United Nations or an international organization for their official use. These are exempt by Notification No. 108/95. Rule 6(6)(v) relates to export under bond. Rule 6(6)(vi) relates to gold or silver arising during refining of copper. These are exempt from payment of duty by Notification No. 5/2006-CE, dated 1-3-2006. It would thus be clear that all the clauses of rule 6(6) are enacted only to deal with the situation when the final products are exempt from payment of duty. If a final product is not exempted from duty, rule 6(1) is not attracted at all and hence rule 6(6) is unnecessary. Rule 6(6) is precisely needed only when the final products are exempt from payment of duty. In th .....

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