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TMI Blog2014 (2) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of excise duty paid on the capital goods used in the manufacture of export goods. Coming to the utilization of the said credit, the appellant has utilised said credit for payment of duty on hangers and zippers which were procured duty free in terms of the Notification No. 43/2001. Appellant was liable to discharge duty liability on the zippers and hangers in terms of Rule 6 of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. Rule 6 provides two options. One option is to clear the goods on payment of duty. The other option is to clear the goods without payment of duty to the manufacturer of hangers and zippers who shall add the same to his non-duty paid stock and dealt w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which were used in the manufacture of knitted garments both for domestic clearance as well as for export. The appellant also procured zippers and hangers for the manufacture of readymade garments for export purpose under Notification No. 43/2001-C.E. (N.T.), dated 26-6-2001 which provides for procuring without payment of duty excisable goods for the manufacture/processing of export goods and the exportation out of India subject to following the procedures prescribed under Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 (Rules in short). The appellant could not utilise, part of the zippers and hangers and the appellant cleared this unutilized zippers and hangers in the DTA on paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... export. Goods which are exported are not exempted goods. As regards the goods cleared in the DTA, the appellant availed the benefit under Notification No. 30/2004, dated 9-7-2004 which prescribed that Cenvat credit of duty paid on inputs should not be taken. It is not in dispute that the appellant has not taken any Cenvat credit of duty paid on inputs in respect of such clearances. There is no bar in the said notification in availing capital goods credit; therefore, the capital goods was rightly availed. Inasmuch as the capital goods have been put to use for the manufacture of export goods, it cannot be said that the appellant utilised the capital goods exclusively in the manufacture of exempted goods . Therefore, the availment of credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for the procedure under the proviso and should not have cleared the goods on payment of duty. Therefore, it is his contention that the payment of duty on the subject goods by utilizing ineligible credit is not sustainable in law. 5. We have carefully considered the submissions made by both the sides. 6. As the issue lies in a narrow compass, we are of the considered view that the appeal itself can be disposed of at this stage. Therefore, after dispensing with the requirement of pre-deposit, we take up the appeal itself for consideration and disposal. 7. There is merit in the contention of the counsel for the appellant that export goods are not exempted goods. In the present case, the appellant has exported the readymade garments ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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