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TMI Blog2011 (1) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... empted goods' as mentioned in the Rule 6 of the Cenvat Credit Rules 2004? (ii) Whether provision of Rule 6 of the Cenvat Credit Rules 2004 regarding disallowance of Cenvat Credit on the inputs used in the manufacture of final product which are exempt from duty, are not attracted in case of goods cleared without payment of duty under notification no.214/86-CE dated 25.03.86?" C.E.A. No.187 of 2010 2. The assessee availed Cenvat Credit as per Cenvat Credit Rules, 2004 (for short, "the Rules") in respect of inputs in manufacture on job work basis. The department raised an objection that the Cenvat Credit was not permissible on inputs used in the manufacture of exempted goods in view of Rule 6(1) of the Rules. Accordingly, proceedings were i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al on the same issue has already been accepted by the department as mentioned in this order-inappeal. In addition to this, the Ld. Assistant Commissioner, Central Excise Division-I, Ludhiana has already in case of M/s Ludhiana Steel Rolling Mills, Ludhiana dropped the demand under similar set of circumstances vide order-in-original No.75/CE/AC/LDH-I/05 dated 30.12.2005. In view of these judgments, the show cause notice does not stand and the same merits to be dropped." 3. The view of the adjudicating authority was upheld by the Commissioner (Appeals) and the Tribunal. 4. We have heard learned counsel for the appellant. 5. Learned counsel for the appellant submits that Cenvat Credit has been availed by the assessee in violation of Rule 6( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be allowed so long as duty is paid on the final product. 9. In cases of manufacturers like the appellants, the final product is the tractor. The intermediate product would be parts which are manufactured for being used in the tractor. In such a case the parts would not be the final product. Thus Rule 57-C would have no application. The mere fact that the parts are cleared from one factory of the appellants to another factory of the appellants would not disentitle the appellants from claiming benefit of Notification No. 217/86-CE dated 2-4-1986. As stated above, the notification itself clarifies that the inputs can be used within the factory of production or in any other factory of the same manufacturer. 10. Mr Lakshmikumaran relied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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