9911796707
TMI Blog2015 (10) TMI 2272X X X X Extracts X X X X X X X X Extracts X X X X ..... OP issued in November 2006 for manufacture of agricultural tractors, aggregates, components and parts thereof. Appellant was granted EOU status, accordingly they carried over the balance amount of CENVAT credit lying in their account in respect of 'inputs' received for use in the manufacture of final products as DTA unit. Appellant utilized the amount of balance CENVAT credit for discharge of duty on the goods which are cleared to DTA from EOU. Revenue authorities were of the view that appellant having converted himself in an EOU cannot have carried forward the unutilized CENVAT credit. Coming to such a conclusion a show-cause notice was issued demanding reversal of such CENVAT credit as also the amount unutilized for discharging the duty l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s produced or manufactured in an export oriented undertaking from whole of excise duty eligible thereon. He would read the judgement of the Tribunal in the case of Indira Gandhi Mahila Sahakari Soot Girni Ltd. 2012 (278) ELT 616 (Tri. Mum) and submit that in the said case, the Bench had held that conversion from EOU to DTA, Modvat scheme is not applicable and the credit lying in balance is to lapse. He would also take us through the findings recorded by the adjudicating authority and submit that the products manufactured by the appellant were exempted. 5. We have considered the submissions made at length by both the sides and perused the records. 6. On perusal of the records, we find that the issue involved in this case is regarding the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared for home consumption or for export, or for payment of service tax on any output service, whether provided in India or exported." 6.3 It can be seen from the above reproduced sub-rule that it will apply only in the situation where final products are exempted. Undisputed fact is that the final products manufactured by appellant in EOU and cleared for export are not dutiable, but the very same final products when cleared into DTA becomes dutiable hence the provisions of Section 5A of the Central Excise Act, 1944 which are sought to be applied by the adjudicating authority and the learned D.R., will not apply as the said provision of Section 5A are in respect of the goods which are fully exempted from payment of duty. Holistic reading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , if any Cenvat credit balance still remains, it shall lapse and the same shall not be allowed to be utilized for payment of duty on any goods whether cleared for home consumption or for export. In our view, this sub-rule would not apply when out of common Cenvat credit availed inputs, more than one final products are manufactured and while some final products have become exempt, others have remained dutiable. Since in terms of sub-rule (4) of Rule 3 of the Rules, the Cenvat credit may be utilized for payment of any duty of excise on any final product, if out of the same Cenvat credit availed inputs, more than one final product are manufactured and out of those final products, one final product has become fully exempt from duty, the Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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