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TMI Blog2019 (6) TMI 1616X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of excisable goods as well non-excisable goods. Central excise duty is being paid as applicable on the dutiable excisable goods claiming the benefits of CENVAT credit as per the provisions of CENVAT Credit Rules, 2004. The case of the department is that the Appellant is liable to pay the amount as per proviso to Rule 6(3)(i) of the aforesaid Rules since the Appellant is manufacturing dutiable as well as exempted goods. The non-excisable goods which are manufactured by the Appellant are goods manufactured with the use of alcohol which is outside the purview of central excise but is subject to levy of state excise. 3. The Ld. C.A. for the Appellant submitted that the subject goods cannot be said to be "excisable goods" and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (40 STR 381 (Tri-Mum)] and Mahindra and Mahindra Ltd vs. CCE Jaipur [2016 (8) TMI 436 CESTAT New Delhi] to contend that the demand of disproportionate credit is not legal inasmuch as the assessee cannot be saddled with the huge duty demand when he has not availed the benefit of credit of that amount. 5. He also pointed out to the amendment made in the Credit Rules in March 2015, i.e. subsequent to the period in dispute, vide Notification no. 6/2015- C.E.(NT) dated 1st March, 2015 whereby Explanation has been added to provide that even the non-excisable goods would be treated as 'exempted goods' for the purpose of availment and reversal of credit as per the Credit Rules. He submitted that this Tribunal in the cases of CCE Ranchi vs. Parial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit in terms of Rule 6 of the Credit Rules. We have gone through the definition of 'exempted goods' under Rule 2(d) of the Rules, as was applicable during the period in dispute, which is as below: 'exempted' goods means excisable goods which are exempted from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to "Nil" rate of duty. 10. The term 'excisable goods' has been defined in Section 2(d) of the Central Excise Act to mean the goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of excise and includes salt. We find that the subject goods manufactured by the Appellant are not excisable goods. We take note of the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provision of Rule 6(2) and 6(3) were applicable. In this regard, the findings of CCE (Appeals) in para 5.2 of the impugned order - "whether the products manufactured by the party are exempted or chargeable to nil rate of duty or non-excisable, the position of payment of 10% under the provisions of Rule 6(3) of Cenvat Credit Rules, 2004 remains the same", is incorrect..." 11. Thus the issue involved herein is no longer res-integra. We are satisfied that the credit is not liable to be reversed in view of the provisions as were applicable during the period in dispute. The reversal of credit, if at all, will be applicable for the period post amendment made vide Notification no. 6/2015- C.E.(NT) dated 1st March, 2015. 12. We have perused th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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