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TMI Blog2024 (8) TMI 1207X X X X Extracts X X X X X X X X Extracts X X X X ..... XCISE VERSUS DRISH SHOES LTD. [ 2010 (5) TMI 334 - HIMACHAL PRADESH HIGH COURT] , wherein 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 - it was held that even if the exempted goods are exported, credit is eligible. Once the issue does not sustain on merits the question of examining the dispute relating to interest and penalty does not arise. The demands cannot be sustained. The impugned orders are set aside - Appeal allowed. - Hon ble Shri M. Ajit Kumar , Member ( Technical ) Ms. Varsha , Advocate for the Appellant Shri M. Selvakumar , Authorized Representative for the Respondent ORDER These appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h interest and also for imposing penalties. After due process of law, the original authority confirmed the demand along with interest and imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence these appeals. 3. Ms. Varsha, learned counsel appeared for the appellants and Shri M. Selvakumar, learned Authorized Representative appeared for the respondent. 3.1 The Ld. counsel for the appellant submitted that as per Rule 6(6) of CCR 2004, exports are excluded from the purview of sub-rules (1), (2), (3) and (4) of Rule 6 of CCR 2004 and therefore, the demand is not sustainable and as a result, demand of interest and imposition of penalty are also not sustainable. She relied on the following case laws:- A. Commissioner of Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r credit is eligible on the duty paid on inputs and input services used in the manufacture of exempted goods which are exported. The said question of law framed by the Hon ble High Court is quoted as under: (1) Whether an assessee exclusively manufacturing wholly exempted goods NIL tariff rate of duty) is eligible to avail CENVAT credit of duty paid on the said inputs and input services under 5 Rule 6(1) of the CENVAT Credit Rules, 2002/CENVAT Credit Rules, 2004, used in the manufacture of such exempted goods, even if such goods are exported. After a detailed discussion, the Hon ble High Court in paragraph 20 has answered the question as under: 20. In view of the above discussion, we hold that an assessee, manufacturing goods chargeable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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