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TMI Blog2016 (12) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... is exempted and the assessee discharge the obligation prescribed in Rule 6 of CCR, 2001 then in spite of the final product is exempted, the exemption on the intermediate goods is available in terms of the notification - as per Sub-Rule (1) of Rule 6, the asseessee is not required to avail the Cenvat Credit in respect of the inputs used in the manufacture of exempted goods. The appellant has not availed the Cenvat Credit in respect of any of the inputs used either in the final product or in the intermediate product i.e. packing boxes. Therefore the condition of Sub-Rule (1) of Rule 6 stands complied with - appeal allowed - benefit of notification allowed - decided in favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned order. Therefore the appellant is before us. 2. Ms. Anjali Hirawat, Ld. Counsel appearing for the appellant submits that only ground for denial of the exemption Notification No. 67/95-CE dt. 16.3.1995 is that the appellant has neither paid the duty on the final product nor discharged the obligations under Rule 6 of Cenvat Credit Rules, 2001. She submits that the final products are cleared under exemption Notification No. 10/2003-CE dt. 1.3.2003. As regard obligation under Rule 6 of the Cenvat Credit Rules. She submits that the obligation have been discharged as much as the appellant have not availed Cenvat Credit in respect of any input used in the manufacture of final product. Therefore the exemption Notification No. 67/95-CE dt. 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cannot be sold or bought out sold in the market. Therefore the said boxes are not marketable, hence not excisable. In this regard she placed reliance on the following judgments: (vii) Union of India Vs. Sonic Electrochem (P) Ltd. 2002 (145) E.L.T. 274 (S.C.) (viii) Automobile Corporation of Goa Ltd. Vs. Commissioner of C. Ex., Goa 2006 (197) E.L.T. 564 (Tri.-Mumbai) (ix) Msrtc s Central Workshop Vs. Commr. of C.Ex. Aurangabad 2012 (282) E.L.T. 101 (Tri.-Mumbai) She submits that for the above reason also, as held in the judgments cited above, the boxes cannot be charged with excise duty. 3. Shri N.N. Prabhudesai Ld. Superintendent (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He placed rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low: "C. CAPTIVE CONSUMPTION (GOODS USED WITHIN FACTORY OF PRODUCTION) GENERAL EXEMPTION NO. 6 Exemption to all capital goods and inputs if captively consumed within the factory of production. In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance Act, 1957 (58 of 1957), (herein after referred to as the said Special Importance Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts - (i) capital goods as defined in rule 3 of the CENVAT Credit Rules, 2002 manufactured in a factory and used within the factory of produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il, high speed diesel oil and motor spirit, commonly known as petrol. All goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than the following , namely :- (i) matches; (ii) fabrics of cotton or man-made fibres falling under Chapter 52, Chapter 54 or Chapter 55 of the First Schedule to the said Act; (iii) fabrics of cotton or man-made fibres falling under heading No. 58.01, 58.02, 58.06 (other than goods falling under sub-heading No. 5806.20), 60.01 or 60.02 (other than goods falling under sub-heading No. 6002.10) of the First Schedule to the said Act.] From the plain reading of the above notification it is observed that in the proviso to clause (iv) the notification it is provided that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is intended for use in the manufacture of dutiable goods. (3)….. From the above Rule 6 it can be seen that a per Sub-Rule (1) of Rule 6, the asseessee is not required to avail the Cenvat Credit in respect of the inputs used in the manufacture of exempted goods. As per the fact of the present case it is undisputed fact that the appellant has not availed the Cenvat Credit in respect of any of the inputs used either in the final product or in the intermediate product i.e. packing boxes. Therefore the condition of Sub-Rule (1) of Rule 6 stands complied with. The finding of the lower authority that since the appellant have not fulfilled Rule 6(2). Therefore they have not discharged the obligation as required in the notification is mis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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