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TMI Blog2015 (4) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... AY HIGH COURT ] - Decided against Revenue. - Appeal No.E/60256/2013-EX(SM) - Final Order No. 50449/2015 - Dated:- 11-2-2015 - Hon ble Mr. Ashok Jindal,J. For the Appellant : Shri Rajiv Tandon, AR For the Respondent : Shri Ravi Chopra, Advocate ORDER Per Ashok Jindal : The Revenue is in appeal against the impugned order of the Commissioner (Appeals). 2. The respondent s own case for earlier period on an identical issue, this Tribunal has held as under: 5. I have considered the submissions from both sides and perused the records. There is no dispute that the common cenvat availed inputs have been used for the manufacture of dutiable final products hand tools which had been cleared on payment of duty and garden tools which are fully exempt from duty under notification no.5/-3006-CE dated 1.3.2006 and that garden tools have been exported out of India under letter of undertaking without payment of duty. According to Rule 5 of Cenvat Credit Rules, 2004, where any inputs or input service is used for the manufacture of final product which are cleared for export under bond or under letter of undertaking or are used in the intermediate products cleared for ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted products are exported outside India the provisions of Rule 6(6)(v) of the Cenvat Credit Rules are applicable. Therefore, the bar provided under Rule 6(1) and the liability created under Rule 6(3)(b) of the Cenvat Credit Rules, 2004 are not attracted. By denying to the petitioner from exporting the printed books under bond what the respondents want to do is in fact to levy 10% on the sale price of the printed books in terms of Rule 6(3)(b) of the Cenvat Credit Rules, 2004. In our opinion this is wholly impermissible. The provisions as now contained in Rule 6 of the Credit Rules, 2004 were contained in Rules 57C and 57CC of the Central Excise Rules, 1944 as they stood prior to 1st April, 2000. From 1st April, 2000 till 30th June, 2001 similar provisions were contained in Rule 57AD of the Central Excise Rules, 1944. In the context of these Rules circular dated 8th November, 2001 of the Ministry of Finance was issued. It dealt with the question whether 8% has to be paid on the sale price of exempted goods. Under Rule 6(3)(v) of Cenvat Credit Rules, 2004, to 8% has been increased to 10%. The relevant portion of the Circular dated 8th November, 2001 reads as under :- Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therwise exempted from excise duty even for domestic consumption and such tractors are exported. The various inputs like engines, etc., used in the tractor may have suffered excise duty. The intention is not to export taxes but only to export the goods. If the inputs like engine going into the manufacture of export commodity namely tractors are subject to excise duty, the Indian manufacturer of tractors becomes internationally uncompetitive. This appears to be the object behind the Government enacting special scheme to ensure that the duty is not levied even on inputs going to the export products. Rule 6(6)(v) has been consciously and expressly enacted with the specific objective to ensure that duty is not levied even on inputs going to the export products. This method of adjustment, both from the point of Government and the assessee is to allow the assessee to take Cenvat credit on the inputs used in the export products and allow the assessee himself to adjust it for payment of duty on other products. If the adjustment is not possible, Cenvat credit is refunded in cash. This appears to be the Scheme of Rule 5 of the Cenvat Credit Rules, 2004. With a view to achieve this object, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther - (i) cleared to a unit in a free trade zone; or (ii) cleared to a unit in a special economic zone; or (iii) cleared to a hundred per cent export oriented undertaking; or (iv) cleared to a unit in an Electronic Hardware Technology Park or Software Technology Park; or (v) supplied to the United Nations or an international organization for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 108/95-CentraI Excise, dated the 28th August, 1995, number GSR 602(E) dated the 28th August, 1995; or (vi) cleared for export under bond in terms of the provisions of the Central Excise Rules, 2002. We may reproduce Rule 6(6) of the Cenvat Credit Rules, 2002, which read as under :- The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either - (i) cleared to a unit in a special economic zone; or (ii) cleared to a hundred per cent export oriented undertaking; or (iii) cleared to a unit in an Electronic Hardware Technology Park or So ..... X X X X Extracts X X X X X X X X Extracts X X X X
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