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TMI Blog2008 (7) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... of H.Acid. As per the provisions of Cenvat Credit Rules, 2004, no Cenvat credit can be allowed on quantity of input or input services used in the manufacture of exempted final product or chargeable to Nil rate of duty. Offence case was registered against the respondent on the ground that they had wrongly availed cenvat credit on their own input used in the exempted product i.e. H.Acid manufactured on job work and cleared without payment of duty under Notification No.214/86-CE. A show cause notice was issued demanding cenvat credit of Rs.7,27,248/- wrongly availed in contravention to Rule 6 of Cenvat credit rules during the period April'04 to June'05 on the input used in the manufacture of finished goods which were cleared under Notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i), and UOI v. West Coast Paper Mills Ltd. 2004 (164) E.L.T. 375 (S.C.). 3. On the other hand, the learned advocate on behalf of the respondent submits that the decision will not loose its precedent value just because an appeal has been filed. 4. There is no dispute that the Larger Bench decision of the Tribunal in Sterlite Industries case is applicable to the present case on fact and law. The only objection the Revenue has, is that an appeal has been filed against this order and therefore, it need not be followed. I find that the judgment cited by learned SDR does not advance their case though a decision which has been appealed against, looses its precedent value. Hon'ble Supreme Court in the judgment in case of West Coast Paper Mills Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not be followed. Similarly, the decision of the Tribunal cited by the learned SDR is also not very helpful to the Revenue's case. The relevant paragraph is reproduced below for better appreciation. "4. After examining the submission, we find that learned Commissioner (Appeals) has chosen to follow the Tribunal's 2004 (175) ELT 236 (T) = Final Order No.A/35/KOL/2004, ibid for the purpose of determining the relevant valuation issue, without any discussion on merits. Now that the Department's appeal against that order has been admitted by the Apex Court, though without any stay of operation, finality and correctness of that order are in jeopardy, as held by the Apex Court in West Coast Paper Mills' case. In the circumstances, as rightly po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nput service which is used in the manufacture of exempted goods or exempted services, except in circumstances mentioned in sub-rule (2). Provided that the Cenvat credit on inputs shall not be denied to job worker referred to in Rule 12AA of the Central Excise Rules, 2002, on the ground that the said inputs are used in the manufacture of goods cleared without payment of duty under the provisions of that rule. (2) Where a manufacturer or provider of output service avails of Cenvat credit in respect of any inputs or input services, and manufactures such final products or provides such output service which are chargeable to duty or tax as well as exempted goods or services, then, the manufacturer or provider of output service shall maintain s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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