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TMI Blog2018 (7) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat Credit Rules, 2004. In terms of Rule 6(1), the appellant should not avail the Cenvat Credit in respect of inputs used in the manufacture of exempted final product - In the facts of the present case also the appellant have not availed the Cenvat Credit in respect of plastic granules, accordingly, they have scrupulously complied with the provisions of Rule 6(1), therefore, according to the provision under clause (vi) of Proviso to N/N. 67/1995-CE, the appellant became eligible for exemption N/N. 67/1995-CE in respect of their intermediate inputs i.e. plastic powder. Benefit of notification allowed - appeal allowed - decided in favor of appellant. - E/10862-10863/2018-SM - A /11192-11193 /2018 - Dated:- 11-6-2018 - Mr. Ramesh Nair, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product is exempted and they are entitled for the exemption Notification 65/1997-CE in terms of clause 6 of Proviso to the Notification. He placed reliance of the judgment of Funskool (India) Ltd. vs CCE, Goa 2017 (357) ELT 435 (Tri.-Mum). 3. Sh. G. Jha, Ld. Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. I have carefully considered the submissions made by both the sides. I find that the facts of the case is not in dispute that the appellant though manufacturing intermediate goods, namely, plastic powder out of plastic granule, but they are also not availing the Cenvat Credit. The Exemption Notification in respect of intermediate input is provided under the Notification 67 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are cleared - (i) xxxx xxxxx xxxxx xxxxx (ii) xxxx xxxxx xxxxx xxxxx (vi) by a manufacturer of dutiable and exempted final products, after discharging the obligation prescribed in Rule 6 of the Cenvat Credit Rules, 2001. Explanation ************* TABLE Description of Inputs Description of final products (1) (2) All goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) other than (light diesel oil, 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 [No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 67/95 as below : 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 us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... All goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than [light diesel oil, 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 Firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r use in the manufacture of dutiable final products and the quantity of inputs meant for use in the manufacture of exempted goods and take Cenvat credit only on that quantity of inputs which is intended for use in the manufacture of dutiable goods. (3) From the above Rule 6 it can be seen that as per sub-rule (1) of Rule 6, the assessee 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 comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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