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TMI Blog2017 (1) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... ularly Rule 6(6) of the Cenvat Credit Rules - appeal allowed by way of remand. - Application No. E/Misc/70281/2016 in Appeal No. E/56068/2014-EX(DB) - Final Order No A/70284/2016-EX(DB) - Dated:- 13-6-2016 - Mr. Anil Choudhary, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical). Shri A.P. Mathur, Advocate for the Appellant. Shri D.K. Deb, Assistant Commissioner (AR), for the Respondent. ORDER Per: Anil Choudhary This appeal is filed by M/s. Indo solar Ltd against Order-in-Appeal No. NOI/EXCUS/000/APPL/177/13 dated 27/08/2013. 2. The appellant a hundred percent EOUs is in appeal against order of Commissioner (Appeals) whereby the disallowance of Cenvat credit have been upheld. 3. As per SCN dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and that was the reason why they had not appeared before the Courts below. In the final order of settlement commission number 3689/2013 to 3694/2013 dated 13/5/13 while the other disputes were settled, but as regards the issue of Cenvat credit the settlement commission observed as follows:- 10.2 The Bench observed that the Revenue has sought to deny cenvat credit by invoking Rule 6 of the Cenvat credit Rules. This provides that cenvat credit shall not be allowed on such quantity of input used in or in relation to the manufacture of the exempted goods or for the provisions of exempted services or input service used in or in relation to the manufacture of exempted services. However, it has been pointed out by the appellant that sub ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed for the manufacture of exempted goods or for provision of exempted services. The applicant had highlighted that Rule 6(6) of the Cenvat Credit Rules lays down that the provisions of sub rule (1) are not applicable in case the excisable goods removed without payment of duty are cleared to a 100% EOU. On that basis, they had sought to argue that the entire amount of Cenvat Credit availed by the applicant is valid. However, the bench observed that this exclusion would only apply to units which are supplying inputs or capital goods to a 100% EOUs in order to enable such suppliers to avail cenvat credit on duty paid inputs acquired by them, since supplies to a 100% EOUs are free of excise duty. 11.4 However, service tax would be on a di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance by the appellant before the Court below, the issue has not been examined with respect to the availability of Cenvat credit in terms of rule 6(6) of the Cenvat Credit Rules, 2004. Accordingly, in interest of Justice we allow the appeal by way of remand. We remand the matter to the adjudicating authority, who shall examine the issue as regards both availability and impediment to avail Cenvat credit with respect to the provisions of Cenvat Credit Rules, particularly Rule 6(6) of the Cenvat Credit Rules. We, further, direct that such an order will be passed within a period of 45 days from the date of receipt of a copy of this order. Further, we direct the appellants to appear before the concerned authority within a period of 20 days from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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