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TMI Blog2014 (4) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-heading no.6304 of the Central Excise Tariff Act. While some of these items are fully exempt from duty, the others are dutiable but all the items were being exported. The dutiable items were being exported after clearance on payment of duty and their export was under claim for rebate of excise duty paid on the goods at the time of their clearance. The respondent during the period of dispute i.e. during period from Jan. 2009 to September, 2009, were availing the Cenvat Credit of central excise duty paid on inputs and service tax paid on input services. The department found that one of the products being exported by them 100% cotton item attracted nil rate of duty and hence the same is an exempted goods in terms of Rule 2 (d) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al under Section 35 E(4) of the Central Excise Act, which is treated as an appeal against the Commissioner's order. 3. Heard both the sides. 4. Ms. Suchitra Sharma, learned Joint CDR, assailed the impugned order by reiterating the grounds of appeal in the Revenue's appeal and pleaded that when a particular final product i.e. 100% cotton item, was attracting nil rate of duty and for this reason, was to be treated as an exempted good in terms of the definition of this term in Rule 2 (d) of the Cenvat Credit Rules, 2004, the Cenvat Credit in respect of the inputs or input services used in the manufacture of such exempted final would not be admissible under Rule 6(1) of the Cenvat Credit Rules, even if the final product had been exported out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when out of common Cenvat Credit availed inputs, fully exempted final products Menthol Crystals and dutiable final products Peppermint Oils were being manufactured, and while Peppermint Oils was being cleared on payment of duty for export under rebate clause, the Menthol Crystals (exempted final Product) were being cleared for export under bond, the assessee was not required to reverse the credit in respect of the inputs used in or in relation to the manufacture of the exempted final product, that same view has been taken by the Hon'ble Himachal Pradesh High Court in the case of Drish Shoes Ltd. (supra), that the ratio of the above judgments of the Hon'ble Bombay High Court and Hon'ble Himachal Pradesh High Court is squarely applicabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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