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TMI Blog2018 (2) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... ralise duties on inputs, whether in the form of goods or services - we see no difficulty in the Assessee's case falling in the exception carved out in Rule 6(6)(v) of the 2004 Rules. Demand do not sustain - appeal allowed - decided in favor of appellant. - E/17/2011 - Final Order No. 40343 /2018 - Dated:- 19-1-2018 - Ms. Sulekha Beevi, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri R. Balagopal, Consultnat for the appellant Shri K.P. Muralidharan, AC (AR) for the respondent ORDER Per Bench The appellants are engaged in the manufacture of 100% cotton yarn. They were availing exemption from payment of duty simultaneously under Notification No. 29/2004-CE dated 09/07/2004 and Notification N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearance. Therefore, the allegation that the appellants were using capital goods exclusively used for the manufacture of exempted goods is incorrect. Further, the finished goods were exported/cleared under bond. Therefore, sub-rule 6 of Rule 6 would apply, which states that sub-rules 1,2,3 4 shall not be applicable in case the excisable goods are removed without payment of duty when cleared for export under bond, in terms of CER, 2002. He relied upon the Hon ble High Court of Madras judgment in the case of CCE, Chennai Vs. Same Duetz Fahr India (P) Ltd. 2017 (6) GSTL 453 (Mad.). 3. Ld. AR, Shri K.P. Muralidharan, AC, reiterated the findings in the impugned order. 4. Heard both sides. 5. The allegation raised in the SCN is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rule 6 are set forthwith hereafter: Rule 6. Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services. - (1) The CENVAT credit shall not be allowed on such quantity of input or input service which is used in the manufacture of exempted goods or for provision of exempted services, except in the circumstances mentioned in sub-rule (2) : Provided that the CENVAT credit on inputs shall not be denied to job worker referred to in rule 12AA of the Central Excise Rules, 2002, on the ground that the said inputs are used in the manufacture of goods cleared without payment of duty under the provisions of that rule. (2)..... (3)..... (4).... (5).... (6) The provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods manufactured by the assessee were not excisable. Though the goods were excisable, the only reason, that Central Excise duty was not paid or was not payable, was, on account of the provisions of the 2006 notification. Therefore, upon executing the bond, the assessee removed what were otherwise excisable goods without payment of duty. 13.1 One of the exceptions to sub-rule (1) of Rule 6 is a circumstance, where excisable goods are exported pursuant to the execution of bond, in terms of Central Excise Rules, 2002. 14. Therefore, on a plain reading, we see no difficulty in the assessee s case falling in the exception carved out in Rule 6(6)(v) of the 2004 Rules. The purpose, apparently, behind carving out of such exceptions app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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