TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appellant meets conditions, complies with tax rules, secures stay petition approval.</h1> <h3>SPENTEX INDUSTRIES LTD. Versus COMMISSIONER OF C. EX. & S.T., INDORE</h3> SPENTEX INDUSTRIES LTD. Versus COMMISSIONER OF C. EX. & S.T., INDORE - 2015 (317) E.L.T. 582 (Tri. - Del.) Issues:1. Denial of benefit of Notification No. 30/2004-C.E. to the appellant.2. Fulfillment of conditions for exemption under the notification.3. Interpretation of Rule 6(3) and Rule 6(3D) regarding Cenvat credit.4. Applicability of the explanation to Rule 3 in the context of exemption conditions.Analysis:1. The judgment deals with the denial of the benefit of Notification No. 30/2004-C.E. to the appellant due to the alleged non-fulfillment of the condition of non-availment of Cenvat credit.2. The appellant had paid 6% of the value of the exempted products at the time of clearance, as required by Rule 6(3)(i). The reversal of this amount under Rule 6(3D) is deemed as non-availment of Cenvat credit for the purpose of exemption notification. By complying with this provision, it was established that the appellant fulfilled the conditions of the notification.3. The lower authorities referred to the explanation to Rule 3, emphasizing the importance of fulfilling the condition of non-availment of credit of duty paid on inputs as prescribed in the notification. The judgment clarifies that the condition can be met either by not availing the credit initially or by reversing a specific amount of the exempted product's value under Rule 6(3), triggering the applicability of Rule 6(3D to establish non-availment of credit.4. As the appellant had reversed the required amount under Rule 6(3), it was deemed that no credit was taken, thereby fulfilling the condition of the notification. Consequently, the stay petition was unconditionally allowed based on this prima facie view. The judgment highlights the importance of correctly interpreting and applying the relevant rules and notifications to determine the fulfillment of exemption conditions.
TaxTMI 