TaxTMI 
TaxTMI 
2015 (7) TMI 225
X X X X Extracts X X X X
X X X X Extracts X X X X
....rom April 2006 to December 2006. During this period, the respondent had supplied boilers to their customers on payment of duty as well as also to their customers against international competitive bidding at nil rate of duty under exemption notification no. 6/06-CE (serial No. 301). Notification no. 6/06-CE (serial No. 301), exempts the goods of any chapter supplied against international competitive bidding from whole of the duty of excise, subject to condition that the goods if imported are exempt from duty of customs leviable under first schedule to the Customs Tariff Act, 1975, and also from whole of additional Customs Duty leviable under section 3 of the said customs tariff act when imported into India. The Department was of the view tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erms of clause (vii) of sub rule 6 of Rule 6 of the Cenvat Credit Rules 2004, the provisions of sub rule (1),(2),(3) & (4) are not applicable in respect of the goods supplied against international competitive bidding at nil rate of duty under exemption notification no. 6/06-CE dated 1/03/2006. The Commissioner in this order has rejected the Departments view that clause-(vii) of Rule 6(6) is not applicable to the goods manufactured in India and is applicable only to the imported goods. The above order of the Commissioner was reviewed under section 35E(1) of the Central Excise Act, 1944 by the Committee of Chief Commissioners and the Committee of Chief Commissioners vide order dated 19.03.2008 directed the Commissioner to file an application ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ding and these provisions are not applicable to the goods manufactured in India and supplied at nil rate of duty under notification no. 6/06-CE dated 01.03.2006 against international competitive bidding. He, therefore, pleaded that the impugned order is not correct. 4. Sh. Rupesh Kumar, Advocate the Ld. Counsel for the Respondent, pleaded that the goods had been supplied by the respondent for a mega power project against international competitive bidding and the same had been cleared at nil rate of duty under notification no. 6/06-CE (serial No. 301), that serial no. 301 of the notification no. 6/06-CE prescribes nil rate of duty for the goods of any chapter of the Central Excise tariff supplied against the international competitive biddin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n no. 6/06-CE in respect of the goods supplied against International Competitive Bidding and there is nothing in the language of clause (vii) of Rule 6(6) form which it can be inferred that this clause is applicable only to the imported goods and not to the goods produced or manufactured in India, that question of payment of excise duty and exemption notification no. 6/06-CE would arise only if the goods cleared and supplied against international competitive bidding are those manufactured in India and this question would not arise if the goods had been imported. He, therefore, pleaded that there is no infirmity in the impugned order. 6. We have considered the submissions from both the sides and perused the records. The respondent by using ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t maintain a separate account and inventory in respect of inputs/ input services used in or in relation to manufacture of dutiable final product and exempted final product and confines Cenvat credit availment only to Inputs/Input services used in or in relation to manufacture of dutiable final product, he would be liable to pay an amount in respect of the clearances of the exempted final product as per the provisions of sub rule 3. In terms of sub rule 1 of Rule 6, the cenvat credit shall not be allowed on such quantity of inputs/ input services which have been used in or in relation to the manufacture of the exempted final product. However, sub rule 6 exempts a manufacturer from the provisions of sub rule (1),(2),(3) & (4) in certain situa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....06-CE, if the same satisfy the condition prescribed in the notification that the same goods, if imported into India are fully exempt from customs duty as well as additional customs duty. In terms of Clause (vii) of Rule 6(6), the provisions of sub rule (1) (2), (3) and (4) are not applicable in respect of such goods. The Department's contention that clause (vii) of sub rule (6) is not applicable to the goods manufactured in India, but is applicable only to the imported goods is absurd, as the clause-(vii) cannot be read in isolation but has to be read with the main provision of sub rule 6. Moreover Rule 6 of the cenvat credit Rules is in respect of the goods manufactured in India and this rule, in general, contains provisions regarding ....