Availing of Modvat Credit as well as exemption under Small Scale Industries Exemption Notification- Regarding.

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.... state that it has been brought to the notice of the Board that a manufacture who had opted to avail exemption from payment of duty based on value of clearance as per the SSI Notifaction (present Notification No. 8/2001- CE, dated 1-3-2001) also availed credit of duty paid on inputs used in the manufacture of other branded finished goods which were dutiable. Further, the said manufacturer used inp....

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....le 57AD of Central Excise Rules, 1944 or Rule 6 of Cenvat Credit Rules, 2001 does not arise. Thus, the manufacturer has violated the condition of the duty exemption Notification on account of the utilisation of credit and the goods in question become liable to duty. 3. In the aforesaid circumstances, it is clarified that provisions of Rule 6 of Cenvat Credit Rules, 2001 are not meant for the ma....