2016 (12) TMI 1045

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....Ajay Kumar, Jt. Commissioner (AR) for the respondent Per: C J Mathew: M/s Hindoostan Spinning & Weaving Mills is in appeal against order-in-appeal no. PII/BKS/543/2004 dated 29th November 2004 of Commissioner of Central Excise (Appeals), Pune-II that upheld the denial of eligibility to notification 14/2002-CE dated 1st March 2002 providing for exemption to woven fabrics cleared by the appellant ....

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.... It is the contention of appellant that they had taken recourse to rule 6(3) of CENVAT Credit Rules, 2002 which allows taking of CENVAT credit only to the extent that inputs are used for manufacture of dutiable goods. They submit that the duty attributable to yarn used in exempt goods is not retained in the CENVAT credit account. According to them, credit was availed on yarn as and when procured b....

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....y then. Appellant manufactures both exempt and duty-paid goods owing to which they follow the procedure laid down in rule 6(3)(a) of CENVAT Credit Rules; that, effectively, they comply with the condition in the exemption notification and that fuel is not covered by the restrictions in rule 6 of CENVAT Credit Rules, 2002. 4. We have heard Learned Senior Counsel and Learned Authorized Representativ....