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TMI Blog2024 (8) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... after discussing the issue in detail has held that the demand alleging that the appellant has to pay amount after including the value of export clearances also was set aside. The demand cannot sustain. The impugned order set aside - Appeal allowed. - MS. SULEKHA BEEVI.C.S., MEMBER (JUDICIAL) AND MR. VASA SESHAGIRI RAO, MEMBER (TECHNICAL) Shri. Raghu Menon, Advocate, for the Appellant Shri Harendra Singh Pal Authorised Representative for the Respondent ORDER Brief facts are that the appellant cleared cotton yarn on payment of duty under Notification No.29/2004-CE dated 09.07.2004 (as it stood then) and cleared cotton at nil rate as per Notification No. 30/2004-CE dated 09.07.2004 which also co-existed with the former notification. They ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appellant has made the exports without executing a bond. 4. The discussions in paragraph 15 and 16 of the order passed by the adjudicating authority was referred to by the Ld. Counsel to submit that the demand has been confirmed only for the reason that the appellant has exported the goods without executing a bond and therefore the benefit of Rule 6 (6) (v) is not applicable. 5. It is submitted that the very same issue is analysed and decided by the Tribunal in the case of their sister concern, namely, M/s. Sri Velayuthaswamy Spinning Mills (P) Ltd., (Unit. II) Vs. The Commissioner of GST CE, Madurai vide Final order No. 40827/2019 dated 06.06.2019. The Ld. Counsel prayed that the appeal may be allowed. 6. The Ld. AR Shri. Harendra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er (i) . . (ii) . . (iii) .. (iv) .. (v) cleared for export under bond in terms of the provisions of the Central Excise Rules, 2002; or Thus, as per Rule 6 (6) (v) of the CENVAT Credit Rules, 2004, when exempted goods are cleared for export under bond, the bar under Rule 6 (1) ibid not to avail credit on common inputs/input services is not applicable. 6.3.1 The demand has been raised stating that Notification No. 42/2001 has done away with the requirement to exclude a bond when exempted goods are exported. In the case of M/s. Drish Shoes Ltd. (supra), the Hon ble High Court has analyzed the issue as to whether credit is eligible on the duty paid on inputs and input services used in the manufacture of exempted goods which are exported. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l one and therefore, refund cannot be denied. The facts in the said case was the denial of refund of unutilized credit under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification No. 5/2006. The relevant paragraph is reproduced as under : 7. The issue came up before the Hon ble High Court of Bombay in Repro India Ltd. (supra) wherein the Hon ble High Court held that CENVAT credit used in the manufacture of final product being exported irrespective of the fact that final product are otherwise exempted by provisions of Rule 6(6)(v) of the CENVAT Credit Rules, 2004 are applicable. Further, I find that in the case of Salzer Controls Ltd. - 2003 (160) E.L.T. 1169 and Paras Ship Breakers Ltd. this Tribunal has held that non-execution of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat credit availed in view of the provisions of Rules 6(1) and 6(2) of the Cenvat Credit Rules, 2004, which are reproduced hereunder :- (1) The Cenvat credit shall not be allowed on such quantity of input or input service which is used in the manufacture of exempted goods or for provision of exempted services, except in the circumstances mentioned in sub-rule (2). (2) Where a manufacturer or provider of output service avails of Cenvat credit in respect of any inputs or input serviced, 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 separate accounts for receipt, consumption a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2004 provides that no Cenvat credit will be available in respect of the inputs used in the manufacture of exempted products. Rule 6(6)(v) of the Cenvat Credit Rules creates an exemption inter alia in respect of the excisable goods removed without payment of duty for export under bond in terms of Central Excise Rules, 2002. Considering the language of Rule 6(6)(v) of the Cenvat Credit Rules, 2004 the petitioners are entitled to avail Cenvat credit in respect of the inputs used in the manufacture of the final products being exported irrespective of the fact that the final products are otherwise exempt. (Underline supplied) So far as the decision cited by the learned AR in the case of Suryamitra Exim Pvt. Ltd. v. CCE, Guntur reported in 2012 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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