TaxTMI 
TaxTMI 
2009 (12) TMI 358
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....m 9-7-04 to 20-2-07 on the ground that newsprint in reels cleared by them is not covered by provisions of Rule 6(3)(a)(v) of Cenvat Credit Rules as it stood prior to 1-3-07. Equivalent amount of penalty has also been imposed. 2. Rule 6(3) of Cenvat Credit Rules is as under : "Rule 6. Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services. (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 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 services, and manufac....
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....r; (iv) Naptha (RN) and furnace oil falling within Chapter 27 of the said First Schedule used for generation of electricity; (v) Newsprints, in rolls or sheets, falling within heading No. 48.01 of the said First Schedule; (vi) Final products falling within Chapter 50 to 63 of the First Schedule; (vii) Goods supplied to defence personnel or for defence projects or to the Ministry of Defence for official purposes, under any of the following notifications of the GoI in the Ministry of Finance (Deptt. of Revenue), namely :- (1) No. 70/ 92-Central ....
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.... I : The amount mentioned in conditions (a) and (b) shall be paid by the manufacturer or provider of output service by debiting the Cenvat credit or otherwise. Explanation II : The manufacturer or provider of output service fails to pay the said amount, it shall be recovered along with interest in the same manner, as provided in Rule 14, for recovery of Cenvat credit wrongly taken, Explanation III : For the removal of doubts, it is hereby clarified that the credit shall not be allowed, on inputs and input services used exclusively for the manufacture of exempted goods or exempted services." 3. The item manufactured by the appellant prior to 1-3-07 was covered by sub-rule (v) of the Rule according to the appellant and accordingly th....
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...., cited several decisions, dictionary meanings were also given, description was as per standards of ISI were also submitted, interpretation of statutes were also discussed. However, we find that we are not required to go into all these issues in view of the fact that after hearing both sides extensively, we find ourselves in full agreement with the view taken by this Tribunal in case of Sri Ramachandra Paper Boards (P) Ltd. as reported in 2007 (218) E.L.T. 386 (Tri.-Bang.). For better appreciation, we reproduce extract as under : "it is seen that the appellant do not take any Cenvat credit in respect of inputs, which go into the manufacture of exempted goods. In that case, there is absolutely no justification for demanding payment of 8%/....