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TMI Blog2022 (8) TMI 1153X X X X Extracts X X X X X X X X Extracts X X X X ..... of its own, manufacture on job work basis, clearance of inputs in as such condition and trading of goods on High Seas Basis. Department's contention is that all the said three activities falls under the category of exempted service. Hence, the appellant are required to pay an amount of 7% in terms of Rules 6 of Cenvat Credit Rules, 2004, on the ground that the appellant is using common input service attributed to all the activities. The Adjudicating Authority confirmed demand and the Learned Commissioner (Appeals) has upheld the same vide the impugned order. Therefore, the appellant filed the present appeal. 2. Shri Paresh Sheth, Learned Counsel appearing on behalf of the appellant submits that as regard the activity of manufacture on job ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G.S.T.L- Tri-All. As regard the demand in respect of removal of input as such. He submits that since the input was cleared as such on payment of duty, it cannot be said that the Trading of said input is exempted activity. Therefore, Rule 6 of Cenvat Credit Rules would not be applicable. He placed reliance on this CESTAT decision in the case of Mahesh Twisto Tech Ltd. Final Order No. A/13504/2017 dated 17.11.2017. 3. Shri R P Parekh, Learned Superintendent (Authorized Representative) appearing on behalf of the Revenue reiterates the finding of the impugned order. 4. I have carefully considered the submissions made by both sides and perused the records. I find that the demand was raised in respect of three types of removal of goods. Consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oreover, the activity of Trading of Goods on High Seas Basis was clearly in the knowledge of the department. Therefore, no suppression of fact can be alleged against the appellant. Hence, the demand is also not sustainable on the ground of time bar. The appellant have relied upon the decision in the case of Optel Ceramic Pvt. Ltd. (supra) wherein this Tribunal has passed the following order: "Heard both sides. This appeal is filed by the Revenue against the Order-in-Appeal No. 248-COMMR (A)/2014-15 dated 31.12.2014 passed by the Commissioner (Appeals), Central Excise, Rajkot, whereunder the ld. Commissioner (Appeals) observed that since the Respondent had reversed the proportionate credit attributable to the exempted product, therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds of payment of duty. In this clear position by any stretch of imagination, it cannot be said that the goods cleared on payment duty is exempted goods or service. Therefore, there is no application of Rule 6(3) for payment of an amount as prescribed therein. This issue was considered by this Tribunal in the case of Mahesh Twisto Tech Ltd (supra), wherein following order was passed by the Tribunal: "Heard both sides. This Appeal is filed against the Order-In Appeal No. BHV-EXCUS-000-APP-028-2017-18 deted 4.9.2017 passed by the Commissioner (Appeals), Central GST and Excise, Rajkot. 2. Briefly stated the facts of the case are that the Appellants are engaged in the manufacture of various types of Twisting machines falling under Chapter 84 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has remanded the matter to re-compute the amount of 6% under Rule 6(3) of CCR, 2004 after excluding the export sales. It is the grievance of the Appellant that the clearance of inputs as such under Rule 3(5) of the CCR, 2004 was not excluded by the ld Commissioner (Appeals) even though they argued the same before him. I find that in view of the judgments of this Tribunal in the case of UP Telelinks (supra) and Mahaveer Cylinders Ltd. (supra), the value of as such clearances of inputs cannot be taken into account in computing 6% of the value of exempted goods i.e. the goods traded by the Assessee. In the result, the impugned order is modified and clearance of goods as such be also excluded while computing the liability of 6% payable on the v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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