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TMI Blog2015 (10) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... he contention of the learned Advocate on merit as well as on limitation. The mere mentioning of Central Excise duty wrongly in the invoice by the input supplier, appellant is not entitled to take CENVAT credit. - input supplier paid amount of ₹ 14,04,483/- as Central Excise duty, as evident from the invoices. But, in the case of ₹ 5,64,435/-, it was found that the input supplier have not paid Central Excise duty and wrongly declared the Central Excise duty in their invoices. This fact, is coming out from the verification report of the jurisdictional Assistant Commissioner, as mentioned in the impugned order. Thus, it is clear hit by Rule 3 of Cenvat Credit Rules, 2004. Regarding the demand is barred by limitation, it is seen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the supplier of parts and accessories paid duty at 16% Adv. at the tariff rate of duty. It has been alleged that the parts and accessories are exempted and the supplier has erroneously paid the duty and therefore, the appellant is not eligible to avail CENVAT credit. There is denial of CENVAT credit of ₹ 5,64,435/- on the ground that the supplier paid the amount on exempted goods i.e. parts and accessories under Rule 6(3) of the Cenvat Credit Rules, 2004. It is stated that Rule 3 of the Rules 2004 permitted to avail credit on the duty and not the amount. The adjudicating authority confirmed the demand of duty alongwith interest and imposed penalty of equal amount. 2. The learned Advocate appearing on behalf of the appellant submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty by Notification No. 6/2002-CE (supra) so, the input supplier is not entitled to pay duty and the duty paid by them would not amount to Central Excise duty. He drew attention of the Bench to Rule 3 of the Rules 2004 to substantiate his contention that CENVAT credit would be eligible on the duty. Regarding the demand of ₹ 5,64,435/-, he submits that the appellants, prior to this period were manufacturing the parts and accessories and they were well aware that the goods were exempted. The amount as mentioned in the invoices would clearly show that it is not the duty but the amount was paid under Rule 6(3) of the Rules, 2004. He reiterates the findings of the Commissioner (Appeals). 5. After hearing both the sides and on perusa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an amount of 5%/ 6%/ 10% of the value of exempted goods. Rule 3 of the Cenvat Credit Rules, provides that a manufacturer shall be allowed to take credit of the duty of excise and other duty as specified therein. It is clear from the Rules 2004 that Cenvat credit is to be allowed to the duties of excise and other duties as mentioned therein. It is also clear that the amount paid by the manufacturer of inputs in respect of exempted goods under Rule 6(3), is not duty. In the present case, the input supplier paid the amount under Rule 6(3) of the said Rules, but, they have shown in the invoices as Central Excise duty. According to the learned Advocate, the input supplier shown amount in the invoices as Central Excise duty, therefore, it can no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.2005 onwards the appellants started paying duty on parts and accessories at the tariff rate of 16% which was also objected to by the department and demand was raised for payment of an amount of 10% of the value of the exempted parts and accessories. Thus, throughout the period of the present dispute, when the appellants were receiving parts and accessories syringes from out side suppliers, the appellants knew that those parts were fully exempt and, therefore, the amount shown as payment of excise duty towards 8% or 10% was actually payment of amount under Rule 6(3) of the Cenvat Credit Rules, 2004. Further, there was never any effective rate of duty at 10% adv on these parts and, therefore, in respect of invoices received form suppliers s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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