CENVAT Credit Rule 6(3) inapplicable for sulphuric acid cleared under concessional exemption procedure.

Sulphuric acid cleared to fertilizer manufacturers under Notification No. 4/2006-CE and the prescribed concessional procedure was treated as outside Rule 6(3) of the CENVAT Credit Rules. The Tribunal noted that the buyers followed the relevant removal conditions and relied on an earlier decision involving the same commodity, notification and requirements, which had already held that separate accounts were not required and no amount under Rule 6(3) was payable. In the absence of any contrary authority, Rule 6(3) was held inapplicable and the Revenue's challenge failed.

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Issues: Whether Rule 6(3) of the CENVAT Credit Rules required payment of the prescribed amount or maintenance of separate accounts when sulphuric acid was cleared to fertilizer manufacturers under the exemption notification and prescribed procedure.

Analysis: The clearance was made under Notification No. 4/2006-CE dated 01/03/2006 and the buyers complied with the procedure under the relevant concessional removal rules. The issue was held to be covered by an earlier Tribunal decision concerning the same commodity, notification, and conditions, which ruled that no separate accounts were required and no amount under Rule 6(3) was payable. No contrary authority was produced.

Conclusion: Rule 6(3) was held not to apply, and the appeal by Revenue failed.

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