TaxTMI 
TaxTMI 
2013 (8) TMI 538
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....ery items viz. "Note Books and Exercise Books" and availing credit of duty paid on inputs/input services used in the manufacture of stationery items. The applicant has exported exercise books on payment of excise duty from Cenvat credit account and filed rebate claim for Rs. 1,33,109/-. Their exercise books are fully exempted from duty vide Notification No. 4/2006-C.E., dated 1-3-2006 (Sr. No. 97). Sub-rule (1) of Rule 6 of Cenvat Credit Rules, 2004, provides that the Cenvat credit shall not be allowed on such quantity of inputs or input services which are used in the manufacture of exempted goods. Therefore, the applicant is not eligible to take Cenvat credit of duty paid on inputs used in the manufacture of exempted final products i.e. ex....
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....Exercise Book" exempted goods, should be exported under Notification No. 21/2004-C.E. (N.T.), dated 6-9-2004, under the procedure of ARE-2 and rebate should be claimed of duty paid on input, which had been used in the manufacture of exported goods. So departmental officer had also committed mistake. 4.3 When the applicant and department both are under bona fide mistake then procedural mistake should be condoned. It is a substantial right of exporter to claim rebate and it cannot be denied due to procedural mistake. Before the adjudicating authority, applicant had submitted vide letter dated 4-2-2009, that rebate of Rs. 76,684/- should be granted, for duty paid on inputs and balance amount of Rs. 56,425/- should be allowed to re-credit in C....
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....Cenvat Credit on input is Rs. 76,684/- was utilised and balance amount is Rs. 56,425/- which was utilized and legally availed on the other input, received in the factory. So the finding of the Commissioner (Appeals) that availment of Cenvat credit to the tune of Rs. 56,425/- is non-existence, is erroneous and without giving a deep thought on issue. 4.5 The rebate of duty to the tune of Rs. 76,684/- should be allowed along with appropriate interest under Section 11BB of the Act, for the delayed period of sanction of rebate. Case laws cited by the applicant : * Modem Process Printers - 2006 (204) E.L.T. 632 (G.O.I.) * Banaras Beads Ltd. - 2011 (272) E.L.T. 433 (G.O.I.....
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....e case of M/s. Banaras Beads Ltd. [2011 (272) E.L.T. 433 (G.O.I.)] in which the lapse on the part of the assessee was a technical lapse and there was no allegation for non-following of procedure under Notification No. 21/2004-C.E. (N.T.). While in the present case, the party has not followed the procedure prescribed under Notification No. 21/2004-C.E. (N.T.) and had claimed rebate of duty after paying the same on exempted goods. Hence, terming of the procedure followed by the party as a technical lapse is clearly an after-thought of the party. 5.4 The applicant had presented ARE-1 before the Range Officer at the time of export. The ARE-1 is a valid document for the export of exempted goods too. The ARE-2 is to be presented only if the expo....
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....and perused the impugned order-in-original and order-in-appeal. 7. On perusal of records, Government observes that the original adjudicating authority has rejected the claim of the applicants on the ground that the impugned goods were fully exempted from duty vide Notification No. 4/2006- C.E. (N.T.), dated 1-3-2006 and therefore by virtue of sub-rule (1) of Rule 6 of Cenvat Credit Rules, 2004 the applicants were not entitled for Cenvat credit on inputs used in manufacture of exempted goods i.e. exercise books. He observed that the impugned goods were exempted vide notification issued under Section 5A(1) of Central Excise Act, 1944 and the applicants were not required to pay duty. He held that the applicants have exported the exempted good....
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....e/exempted export goods. 9. Government notes that exported goods were unconditionally exempted from whole of duty under Notification No. 4/2006-C.E., dated 1-3-2006, so assessee had no option to pay duty as laid down in sub-section (1A) of Section 5A of Central Excise Act, 1944 which is extracted as under : "(1A) For the removal of doubts, it is hereby declared that where an exemption under sub-section (1) in respect of excisable goods from whole of duty of excise leviable thereon has been granted absolutely, the manufacturer of such excisable goods shall not pay duty of excise on such goods." The Notification No. 4/2006-C.E. (N.T.), dated 1-3-2001 issued under Section 5A(1) of Central Excise Act, 1944 grants exemption from whole of duty....