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TMI Blog2019 (2) TMI 1482X X X X Extracts X X X X X X X X Extracts X X X X ..... for projecting, dispersing or spraying liquids etc. under chapter 8424. The only dispute is regarding the LDPE pipes which were cleared for other than agricultural and horticultural purposes. According to appellant assessee, these LDPE pipes are cleared to their dealers for other than agricultural and horticultural purposes, would merit classification under chapter 3917 and is liable for Central Excise duty and no exemptions are available hence they have correctly availed the benefit of CENVAT credit of the duties paid on LDPE granules, input services and capital goods. The appellant assessee had been reversing 10% of the value of exempted goods cleared by them correctly so, by following the provisions of Rule 6 of CENVAT Credit Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, having availed CENVAT Credit of duties paid on inputs, input services and capital goods, they make a payment of 10% of the value of such exempted goods cleared as per provisions of Rule 6(3) of CENVAT Credit Rules 2004. The case of Revenue in the show cause notice is that since LDPE pipes according to appellant are classifiable under 8424 9000 and are unconditionally exempted, the appellant assesse s option of paying central excise duty on LDPE pipes cleared to dealers is in violation of provisions of Section (1A) of Section 5(A) of Central Excise Act and CENVAT credit availed on capital goods, inputs and input services which are exclusively used in the manufacture of exempted goods needs to be reversed; show cause notice was issued, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant assessee is not sure of the end use of LDPE pipes, they have paid duty hence allegation of the department that inputs (LDPE granules), capital goods and input services used in the manufacture of LDPE pipes are exclusively used, is not correct and LDPE pipes are not totally exempted. It is his further submission that since LDPE pipes are also cleared on payment of duty, they are eligible to avail credit of common inputs, common capital goods and common input services and having availed CENVAT credit on all these items, appellant assessee reverses/pays 10% of the value of exempted goods as provided under Rule 6(3) of CENVAT Credit Rules 2004, which is not denied or disputed. 4. Ld. DR on the other hand draws our attention to the invoi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant when he clears the LDPE pipes to consumers for use the same for agricultural and horticultural purposes, claims the exemption under notification No. 3/2005-CE, classifying the said LDPE pipes under chapter heading 8424 9000 as mechanical appliances. It is very clear from the records and from the submissions of both sides that there is no dispute on the classification of the products of LDPE pipes attached with sprayer for projecting, dispersing or spraying liquids etc. under chapter 8424. The only dispute is regarding the LDPE pipes which were cleared for other than agricultural and horticultural purposes. According to appellant assessee, these LDPE pipes are cleared to their dealers for other than agricultural and horticultural purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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