TaxTMI 
TaxTMI 
2017 (11) TMI 282
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....se circumstances, the provisions of Rule 6(3) of the Cenvat Credit Rules are not attracted. He pointed that the said exemption is subject to the condition that the goods are used for a specified purpose, and where such goods are elsewhere used than in the factory of production, procedure laid in Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 is followed. Ld. Counsel relied on the decision of Dharamsi Morarji Chemical Co. Ltd. - 2010 (255) ELT 314 wherein it has been held that the clearance made under Chapter X does not amount to exemption from duty. He argued that in the said case it was held that the provision of Rule 6 of Cenvat Credit Rules are not applicable. He also relied ....
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.... there is no dispute that there is exemption of these goods therefore the provisions of Rule 6 of Cenvat Credit Rules can be invoked. He argued that invocation of extended period of limitation and penalty has rightly been done. He pointed that while the fact regarding the clearance under exemption was known to the revenue the fact that common inputs are used was not known. 4. I have gone through the rival submissions. I find that for the clearance made on 31.12.2013 show-cause notice was issued on 08.07.2015. Rule 6(6) of Cenvat Credit Rules 2004 reads as follows:- "(6) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either " (i) .....
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....ay it cannot be ascertained if the goods cleared under notification 12/12-C.E by the appellants in the instant case were hit by mischief of Rule 6(6) of Cenvat Credit Rules, since the exclusion from the mischief of Rule 6(6) is very specific. The appellants cannot claim that the facts that the goods were not related power projects was known to the revenue or they had disclosed the relevant fact to the revenue. In these circumstances, extended period has rightly been invoked. 5. Insofar as merits of the case are concerned, the appellants have sought to rely on the decision made with reference to Rule 57CC of erstwhile Central Excise Rules, 1944. Rule 57CC reads as under:- "57CC. Adjustment of credit if final products are exempt. ....
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.... Rule 57CC deals with exempted products. Rule 6(6) of Cenvat Credit Rules reads as under:- "(6) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either " (i) ... (ii) ... (iii) ... (iv) ... (v) ... (vi) ... (vii) All goods which are exempt from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under sub-section (1) of section 3 of the said Customs Tariff Act when imported into India and are supplied, " (a) against International competitive Bidding, or (b) To a power project from whi....