TaxTMI 
TaxTMI 
2015 (10) TMI 2348
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....ufacturer of tractors which were exempted from Basic Excise Duty in terms of Notification No. 6/2002-CE as amended by Notification No. 23/2004-CE dated 8.7.2004. The appellants were however required to discharge Industrial Cess and Education Cess on such tractors at the time of their clearance from their factory premises. The appellants also manufacture IC Engine, transmission assemblies and other parts of tractors on which Excise Duty @ 16% ad valorem and Education Cess @ 2% was paid, The appellant availed credit of the duty paid on common inputs which were used in the manufacture of the aforesaid products. They paid 10% of the sale price of tractors at the time of their clearance from their factory premises, as stipulated under Rule 6(3)(....
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....e exempted when captively consumed in the manufacture of the final product. Therefore, I am of the view that provisions of Rule 6(3)(b) of the Cenvat Credit Rules, 2004 would not be applicable in this case and CENVAT Credit was not available on inputs used in the manufacture of tractors as both the tractors and aggregates for tractors were exempted; provisions of Rule 6(1) of the Cenvat Credit Rules would be attracted. Therefore, there was no necessity for the appellants to reverse CENVAT Credit equivalent to 10% of the price of tractors when the tractors were cleared for testing, as provisions of Rule 6(3)(b) of Cenvat Credit Rules were not applicable in this case. The tractors in this case could have been cleared under nil duty Challan or....
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....ppellant had cleared the tractors for export under Bond and under Rule 6(6)(v) of the Cenvat Credit Rules, neither any duty is payable nor the sub-rule (i), (ii), (iii) & (iv) are applicable. Accordingly, the amount of 10% paid earlier was claimed as refund, as the same was not legally payable due to the fact of export. The appellant also relied on the Division Bench ruling of this Tribunal in the case of Escort Ltd. 2004 (171) ELT 817 wherein the assessee has manufactured both the dutiable and exempted varities of tractors by using input on which Modvat credit was taken and paid 8% of the value of exempted tractors at the time of clearance on the ground that they were taking Modvat credit in respect of engines used in the exempted tractors....
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....ecome uncompetitive in international market and in spite of delay or lapse in execution of Bond/LUT, refund could not be denied. It was pointed out that Hon'ble High Court vide their order dated 20.6.2014 have granted stay of the order of the Tribunal in view of the pendency of the similar issue before the Hon'ble Supreme Court. 6. Having considered the rival contentions, I find that the issue in the case of Jolly Board Ltd. (supra) is different than the issue in the present appeal. Further, I find that the learned Commissioner (Appeals) has admitted that no tax was payable when the tractor was cleared in the DTA for testing purpose and the same could have been done by adopting the process of Rule 4(5)(a) of the Cenvat Credit Rul....