TaxTMI 
TaxTMI 
2017 (5) TMI 603
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....s of provisions of Rule 6(3) is to be considered as "other tax" so as to deduct the same from the assessable value and the appeal has to be allowed by following the earlier order of the Tribunal in the same assessee's case as held by Member (Technical) or the said reversal of 10% in terms of the said Rule 6(3)(b) is not required to be deducted from the value of the exempted final products." 2. Learned Counsel Shri Ashutosh Upadhyay, appeared on behalf of the appellant; submits that 10% of amount which is charged towards the adjustment of use of cenvated inputs in exempted goods is nothing-else but the CENVAT credit paid on inputs and is equivalent exaction of the duty from the appellant. He would take us through the provisions of Rule 6(....
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....urpose of public. He would submit that the ratio would apply in the case in hand and submit that since the appellant is required to reverse 10% of the amount of the exempted goods cleared for consuming common inputs for dutiable and exempted goods, this would follow under the category of compulsory exaction of money. 3. Learned D.R. on the other hand takes us through the said Rule 6 (3)(b) and submits that "other taxes if any" is a residual category and any other taxes which are leviable are allowed to be deducted. It is his submission that there is no specific tax in the contemplation of legislature and hence other taxes are not named and a suffix is added "if any" which implies that if at all, there is any other tax, only then this ter....
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....s tax and other taxes, if any, paid on such goods, of the exempted final product charged by the manufacturer for the sale of such goods at the time of their clearance from the factory;" 4.1 It is undisputed that the appellant-assessee is entitled to avail CENVAT credit of the duty paid on inputs if used for manufacturing of the final products on which appropriate Central Excise duty is liable to be discharged. Section 6 of Cenvat Credit Rules, 2004 categorically laid down the provisions as to that CENVAT credit of the duty paid on the inputs cannot be availed by an assessee if he manufactures exempted goods. Provisions of Rule 6(3)(b) are enacted in a situation wherein an assessee consumes duty paid inputs in the manufacturing of dutiabl....
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....xempted goods is sought to be made by the learned Counsel as an assessable value of the dutiable goods and claimed reduction of 10% of the value of the goods to arrive at the assessable value for discharging 10%; this seems to be not in consonance with the law, as the assessable value is defined under the provisions of the Central Excise Act and the provisions of Section 4 categorically talks about the „transaction value of the goods‟. Even applying broadly the proposal of the taxation, cost of the exempted goods needs to be considered as a whole and claim of reduction for 10% of credit towards consumption of the common inputs cannot be upheld as the price of exempted goods is not determined as per provisions of law. In our view....