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TMI Blog2018 (5) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... emand of an amount equivalent to 5%/10% of the value of exempted goods cleared and demand is in terms of Rule 6(3) of CENVAT Credit Rules, 2004 for the period June, 2005 to November, 2009. The respondent herein contested the issue on merits before the Adjudicating Authority. The Adjudicating Authority after considering the entire factual matrix by the impugned order dropped the proceedings initiated by holding that part of the amount is liability to be confirmed while the majority of the amount is not to be confirmed as the respondent had not availed CENVAT credit on the finished goods cleared without payment of duty. Revenue is aggrieved by such an order. 4. Learned Counsel for the respondent submits that they are not in appeal against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re cleared to 100% EOU and also that no credit was availed on the inputs which are used for manufacturing of leaflets. The findings were recorded by Adjudicating Authority in detailed and we concur with the same and reproduced which are as under: 24. Regarding issue at para 21(b) supra, as per the provisions of Rule 6(1) of CENVAT Credit Rules, 2004, CENVAT credit shall not be allowed on the inputs used in manufacture of exempted goods and in terms of Rule 6(2) of the Rules, where a manufacturer, manufactures both dutiable and exempted goods, he is supposed to maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of exempted goods and take credit only on that quantity of input which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avail any CENVAT credit on the inputs used in the manufacture of leaflets and hence there cannot be any demand on the clearances of leaflets. This contention of the assessee was got verified and it was found to be true. Hence, there cannot be demand under Rule 6(3) of the CENVAT Credit Rules, 2004 as far as the clearances of Leaflets are concerned. As regards, the other two items viz labels and brochures, it is contended by them that by virtue of provisions of Rule 6(6) of the CENVAT Credit Rules, clearances made to 100% EOUs should not be taken into consideration for computing their liability. They also stated that no such consignment was cleared for export under bond and the same was found to be true during verification by the Department. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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