TaxTMI 
TaxTMI 
TaxTMI 
2006 (9) TMI 22
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the schedule to the Central Excise Tariff Act, 1985. The Appellants were taking Cenvat Credit on all the inputs received and utilized in the manufacture of finished products. Some of the inputs were common inputs used in the manufacture of dutiable final goods as well as non-dutiable or exempted final goods. However, some of the inputs were exclusively utilized in the manufacture of exempted final goods. It appeared that the Appellants had contravened the provisions of Sub-rule (1) of Rule 6 of Cenvat Credit Rules, 2002 inasmuch as they had taken credit of duty on the inputs utilized exclusively in the manufacture of the exempted products and such credit had been utilized towards payment of duty on other final products. The Appellants had ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Nos. 874-875/2006 dated 21.4.2006 [reported in 2006(76) RLT81O (CESTAT-Ban.)] and Final Order Nos. 1961-1962/2005 dated 10.10.2005. He produces a copy of these orders. He submits in terms of these order, they are not required to reverse the credit and demands are therefore not sustainable. 3. The learned JDR reiterates the Departmental view. 4. On a careful consideration, we notice from the Final Order Nos. 572-576/ 2005 dated 7.4.2005, the Tribunal in Paras 6-7 has held as follows: 6. We find that Rule 57C (1) has been satisfied, as the appellants have undisputedly paid 8% of sale price of the exempted final product. The following submission made by the Counsel in the written submission is required to be accepted. The above features i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated as complied with if and only if the requirement of Rule 57CC (1) is fulfilled by the specified category of manufacturer. That is why the expression "only when" and not merely the word "when" is employed in the latter portion of Rule 57C (2). It is therefore, clear that once an assessee manufactures dutiable and exempted final products and takes credit of all the inputs and pays an amount of 8% as required under Rule 57CC (1), he would be deemed to have complied with the requirement of Rule 57C (1) and credit taken therefore on the input cannot be denied. It is evident that the wording of Rule 57C (2) and Rule 57CC (1) are descriptive of the type of manufacturer and have no nexus or bearing with the input used by the manufacturer. Conse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of specified duty on any input.., which is used or ordinarily used in or in relation to the manufacture of both the aforesaid categories of final products Was descriptive of the type of manufacturer covered by Rule 57CC (1). Payment of 8% had no nexus or bearing with the credit take on the so- called exclusive inputs. There was nothing in Rule 57CC (1) to indicate that 8% paid was to be accounted for or treated as credit attributable to the exclusive inputs. In fact, the reference to common inputs has been made only to describe the type of manufacturer to whom the obligation of Rule 57CC (1) would apply The fulfilment of the condition of Rule 57C (1) will not be confined, in such a situation, only to the credit taken on common inputs. The s....