2010 (2) TMI 954

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....:- Para 24(4) of the impugned order reads as follows :- "..........In view of the various case laws which have been submitted by the assessee in their written brief and which has been apparently accepted by the department and has attained finality, the exemption under Chapter X procedure (or with Chapter X condition) in fact is not an exemption and it cannot be equated with NIL rate of duty or exemption i.e. without duty in normal sense. In fact the scheme of Chapter X procedure and its extension under the appropriate notification issued by the Government of India is with reference to providing remission of duty on such industrial raw materials which are used in final products for providing a type of subsidy. Accordingly the exemption....

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....ted out that the Naphtha was cleared under various exemption notifications at nil rate of duty, to be used in or in relation to the manufacture of fertilizer, subject to following the Chapter: X Procedure. Contention is that the Naphtha was cleared at nil rate of duty under the exemption notifications; hence as per the provisions of Rule 57CC/57AD of the Central Excise Rules and Rule 6 of the CENVAT Credit Rules, the Respondent is liable to pay 8% of the price of the goods namely, Naphtha cleared under the exemption notifications at nil rate of duty. Hence, the impugned order is not sustainable. Revenue also relied upon the definition of exemption as provided under Rule 57AD of the Central Excise Rules. Revenue also relied upon the decision....