2010 (1) TMI 1085

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....06.10. The said Glazed Tiles are subject to excise duty of 16%. However by Notification No. 6/2002 dated 1-3-2002, as amended, by Notification No. 45/2003 and Notification No. 60 of 2003 under Sl. No. 275, a concessional rate of 8% is prescribed subject to the condition No. 62, which reads as under :- "If no credit of duty paid on the inputs used in or in relation to the manufacture of such Ceramic Glazed Tiles has been taken under Rule 3 or Rule 11 of Cenvat Credit Rules, 2002." The appellants started availing the benefit of the Notification w.e.f. 14-5-2003. As a condition to avail the benefit of the said notification, the appellants were not availing Cenvat Credit of duty paid on the inputs under Rule 3 of the Cenvat Credit Rules. ....

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.... the inputs are to be granted as refund in terms of Rule 5 as the said rule provides for refund when the credit could not be utilised "for any reason". He also fairly submits that in their own case, the Division Bench of the Tribunal vide Final Order No. 1347-1353/2009-EX (DB), dated 26-11-2009 [2010 (253) E.L.T. 511 (Tri.-Del.)] has rejected their appeal on the very same issue. He submits that the said order has been passed ex parte and the same was based on erroneous appreciation of facts inasmuch as it has been held that, "it is not in dispute that the appellants had availed the credit of the duty paid on inputs used in or in relation to the manufacture of ceramic tiles."(Para 7 of the order). 5. Ld. DR submits that the appellants hav....

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....king refund of notional credit attributable to inputs used in the manufacture of the goods exported. 6.2 Rule 5 of the Cenvat Credit Rules, in my opinion, cannot be read in isolation. It is part and parcel of Cenvat Credit Rules. Rule 3 enables credit of duty paid by the supplier of raw materials to be taken as credit by the manufacturers of final products. The Cenvat Credit Rules also provides for the manner and purpose for which the credit taken can be utilised. The Cenvat Credit Rules provide for refund of credit of Cenvat under certain exigencies as mentioned in Rule 5 of the said Rules. In the present case, the appellants are not entitled to take credit under Rule 3 of Cenvat Credit Rules as part of condition to avail the benefit of....