9911796707
TMI Blog2012 (6) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... that:- original adjudicating authority must give a clear finding as whether the goods which are alleged to be exempted goods are the outcome of a process which amount to manufacture. The appeals are allowed by way of remand, Stay applications also stands disposed of - E/856 to 863/10 - Mum - A/448-455/2011-WZB/C-II(EB) - Dated:- 9-5-2011 - Shri Rakesh Kumar, Shri Ashok Jindal, JJ. Appearance Ms Charanya Lakshmikumaran, Advocate for Appellant Shri S.S. Katiyar, SDR for Respondents Per :- Rakesh Kumar The facts leading to these appeals and stay applications are in brief as under. 1. The appellants are engaged in the manufacture of various chemicals falling under Chapter Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the department alleges to be manufacture of exempted finished goods was the goods purchased from the market and sold after packing and re-labelling, in some cases after dilution and such trading activity do not amount to manufacture and for this reason the provision of Rule 6(3) (b) of CENVAT Credit Rules, 2004 are not attracted, but this plea was rejected by the Addl. Commissioner. On appeal, the Commissioner (Appeals) upheld the Addl. Commissioner's order. It is against these two orders, that these appeals along with stay applications have been filed by the appellant company as well as by the Managing Director and Directors of the appellant Company. Though these matters were listed for hearing of stay applications only, after hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order by reiterating the findings of the Commissioner (Appeals) and emphasized that the appellants have manufactured, besides the dutiable final products, the excisable goods which are fully exempt from duty and that some are covered by the definition of exempted goods, and that since the appellants have not maintained separate inventory and account of the inputs intended for use in the manufacture of dutiable final products and exempted final products, as per the provisions of Rule 6(2), amount has been correctly demanded in respect of clearance of exempted goods and the penalties has been correctly imposed on the appellant company and the directors. 5. We have carefully considered the submissions from both the sides and perus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h are chargeable to duty or tax as well as exempted goods or services, then, the manufacturer or provider of output service shall maintain separate accounts for receipt, consumption and inventory of input and input service meant for use in the manufacture of dutiable final products or in providing output service and the quantity of input meant for use in the manufacture of exempted goods or services and take CENVAT credit only on that quantity of input or input service which is intended for use in the manufacture of dutiable goods or in providing output service on which service tax is payable. (3) Notwithstanding anything contained in sub-rules (1) and (2), the manufacturer of goods or the provider of output service, opting not to main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been defined in Rule 2(d) of CENVAT Credit Rules, 2004, as excisable goods which are exempt from the whole of duty leviable thereon and includes the goods which are chargeable nil rate of duty. Thus the 'exempted goods' referred to in Rule 6(2) have to be excisable goods i.e. the product of some process which amounts to manufacture and if such goods are fully exempt from duty or as chargeable to nil rate of duty, the provisions of Rule 6(2) and 6(3) would apply. If the process does not amount to manufacture, the provisions of Rule 6(2) read with Rule 6(3) would not apply. Thus very basis of the impugned order that the provisions of Rule 6(2) and 6(3) would be applicable even if common inputs are used in the manufacture of dutiable goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
