TaxTMI 
TaxTMI 
2017 (10) TMI 277
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....t though they are not registered as their clearances are below the threshold limit prescribed in law. Ld. AR argued that the appellants have not exported the goods under bond. He argued that the export under bond is primary requirement under Rule 5 which reads as under:- "Rule 5 of Cenvat Credit Rules, 2004 reads as under:- Rule 5 A manufacturer who clears a final product or an intermediate product for export without payment of duty under bond or letter of undertaking, or a service provider who provides an out service which is exported without payment of service tax shall be allowed refund of CENVAT credit as determined by the following formula subject to procedure, safeguards, conditions as limitations as may be specified by the Boar....
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.... accounts for export and home consumption, as required in terms of the above said circular, hence was not eligible for refund of Cenvat credit. 4. Ld. AR differentiated the case of CCE vs. KanakAgri Tech - 2007 (216) ELT 726 relied upon by the Commissioner (Appeals) wherein the export was made under bond unlike the present case wherein export was not made under bond. He differentiated the decision of Tribunal in Accent Microtech Inds. - 2007 (218) ELT 369 relied upon by the Commissioner (Appeals) on the ground that the issue is totally different. He also differentiated the decision of the Hon'ble High Court in Repro India Ltd. - 2009 (235) ELT 614 relied upon by the Commissioner, on the ground that in the said case the unit was regis....
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....eme to ensure that the duty is not levied even on inputs going to the export products. Rule 6(6)(v) has been consciously and expressly enacted with the specific objective to ensure that duty is not levied even on inputs going to the export products. This method of adjustment, both from the point of Government and the assessee is to allow the assessee to take Cenvat credit on the inputs used in the export products and allow the assessee himself to adjust it for payment of duty on other products. If the adjustment is not possible, Cenvat credit is refunded in cash. This appears to be the Scheme of Rule 5 of the Cenvat Credit Rules, 2004. With a view to achieve this object, the Central Government has specifically enacted Rule 6(6)(v) of the....
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....l the clauses of Rule 6(6) are enacted only to deal with the situation when the final products are exempt from payment of duty. If a final product is not exempted from duty, Rule 6(1) is not attracted at all and hence Rule 6(6) is unnecessary. Rule 6(6) is precisely needed only when the final products are exempt from payment of duty. In this context the Revenue itself has accepted that under the provisions of Cenvat Credit Rules, 2002 there were provisions for removal of exempted goods under bond but the same was not available with effect from 9th September, 2004 under Cenvat Credit Rules, 2004. We may reproduce Rule 6(5) of the Cenvat Credit Rules, 2002 which reads as follows :- "(5) The provisions of sub-rule (1), sub-rule (2), sub-....
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....em, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 108/95-Central Excise, dated the 28th August, 1995 number G.S.R. 602(E) dated the 28th August, 1995; or (v) cleared for export under the items of the provisions of the Central Excise Rules, 2002; or (vi) gold or silver falling within Chapter 71 of the said First Schedule, arising in the course of manufacture of copper or zinc by smelting." A perusal of the aforesaid Rules would clearly show that sub-rule (i) to (vi) are identical and the difference in Rule 6(6) of the Cenvat Credit Rules, 2004 and Rule 6(5) of the Cenvat Credit Rules, 2002 is not relevant for the purpose of the....
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....254) ELT 417 (HP) and argued that the Hon'ble High Court has ruled that an assessee manufacturing goods chargeable to nil rate of duty is eligible to avail cenvat credit under the exception clause to Rule 6(1) as contained in Cenvat Credit Rules and 6(6) of Cenvat Credit Rules, 2004, if the goods are exported. 7. I have gone through rival submissions. I find that the appellants are not a registered unit. I also find that there is no requirement for being registered to avail benefit under provisions of Cenvat Credit Rules. The full argument of the Revenue is that the appellants had not exported the goods under bond which is a requirement of Rule 5 of Cenvat Credit Rules, 2004. It is seen that the goods manufactured by the appellants a....