9911796707
TMI Blog2025 (1) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... dit can be availed on input services used in the manufacture of such goods. The impugned order in appeal is hence set aside. The appeal is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Appellant is before this Tribunal. 3. Learned Advocate Shri. Karthikeyan appeared for the appellant and submitted that the Hon'ble High Court of Bombay in the case of Repro India Ltd reported in 2009 (235) ELT s614 (Bom) has held that cenvat credit is available in respect of inputs irrespective of whether the goods manufactured and exported is either dutiable or exempted and the said decision has been followed by the Hon'ble High Court of Himachal Pradesh in the case of Drish Shoes Ltd reported in 2010 (254) ELT 417 (HP) and that these decisions were relied upon before the lower authorities who had not considered them in the proper perspective. It is his submission that identical issues involved in this case came up for decision in the case of Sri. Velayutham Spinning Mills (P) Ltd reported in 2024 (8) TMI 1207 CETAT Chennai and in the case of Sivaraj Spinning Mills reported in 2024 (8) TMI 990 Cestat Chennai wherein considering the aforesaid decisions of the Hon'ble High Court it was held that the demands cannot be sustained and the impugned orders were set aside with consequential relief. It is his submission that when the demand itself is unsustainable, the question of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either - (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 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 Rule 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ." The said decision in M/s. Jolly Board Ltd (supra) has been upheld by the Hon'ble High Court of Bombay as reported in 2017 (50) S.T.R. 131 (Bom.). While analyzing the issue, the Hon'ble High Court has endorsed the view taken in M/s. Drish Shoes Ltd. (supra). 6.3.3 Further, the decisions in M/s. Lavino Kapur Cottons Pvt. Ltd (supra) as well as M/s. GPI Textiles Ltd.(supra) are judgements wherein the eligibility of credit on input services for the goods exported after availing the exemption under Notification No. 30/2004 was considered. The relevant paragraph of M/s. Lavino Kapur Cottons Pvt. Ltd (supra) is noticed as under "7. The appellant availed Cenvat credit on input service used in the manufacture of their final products. The department denied them the credit on service paid on input service on the ground that they have exported the goods while claiming the benefit of Notification 30/2004. The case of the appellant is that they are a 100% EOU and they are exporting most of their product and they have claimed the benefit of Notification 30/2004. The department has denied them Cenvat credit availed in view of the provisions of Rules 6(1) and 6(2) of the Cenvat Credit Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit 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 (283) E.L.T. 504, the export related to frozen shrimps and frozen fish which are attracting no duty or nil rate of duty and the exception provided in respect of export bond should be read in the context of liability to duty, which is the primary condition for the purpose of allowing Cenvat credit under the Cenvat Credit Rules which is not the issue in the present case. The input services used in the manufacture of final product have suffered service tax and are exported is not in dispute in this case. Therefore, the case law cited by the learned AR is not relevant to the present case. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
