TaxTMI 
TaxTMI 
2018 (6) TMI 126
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....ant is manufacturer of bulk drugs, DMO, Terpenes, and Menthene and Peppermint oil etc. and exempted goods, namely Menthol and Menthol Crystals. As per Budget, 2008, Menthol and Menthol Crystals were exempted from payment of duty vide Notification No.4/2008-CE dated 1.3.2008 by inserting entries No.54A and 54B in the said notification. The appellant is availing Cenvat credit facility on the inputs and capital goods which used in or in relation to manufacture of final products. During the course of audit, it was observed that in the month of March, 2008, the appellant had effected clearances of their finished goods i.e. Menthol and Menthol Crystals under exemption but failed to pay an amount equivalent to Cenvat credit taken by them in respec....
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.... 2004 and in any case, Rule 11, cannot be read in isolation and in ignorance of Rule 6 of Cenvat Credit Rules. Therefore, Rule 11 which is transitional provision should be read with Rule 6. There is nothing in Rules to say that the provisions of Rule 11 will eclipse the provisions of the Rule 6 and both the provisions have to be read parallel. In view of this to hold that a particular product is exempted or not, the resort shall be made to Rule 6. Once it is established that the product of the appellant does not fall under exempted goods, there will be no application of Rule 11. 4. It is further submitted that it is a matter of fact that the appellant had executed a letter of undertaking/bond which was duly accepted by the jurisdictional....
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.... A-105 (SC). In that circumstance, the impugned order is to be set aside. 5. Heard both sides and perused the records. 6. We find that on identical issue in the case of Sharp Menthol India Limited wherein the facts of the case are as under:- "2.The brief facts of the case are that the respondent is a manufacturer registered with the Central Excise for the manufacture and export of Menthol Crystals BP/USP and Flavouring Material (Mint Blends, Rectified Pepermint Oil, Flavours and Fragrances etc.). The duty paid inputs received by the respondent were either used in manufacturing flavouring material, or as a common input for manufacture of Menthol Crystal BP/USP and Flavouring material. 3.It is an admitted fact that, on 1-3-2008 Me....
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....espondent rebate claims preferred by it under Rule 18 of the Central Excise Rule, 2002. These show cause notices were issued on the premise that the Cenvat Credit, which was utilized by the respondent towards payment of duty, of which rebate had been claimed was not available to it as per the show cause notice dated 9-9-08 (supra) issued by the Ld. Commissioner of Central Excise, Delhi." And this Tribunal has examined the issue and observed as under:- "25.After examining and submissions made by the parties, it is clear that Rule 11(3)(ii) is only a transitional provision without any non abstain clause and is not an overriding provisions to erode the benefits conferred vide Rule (3), (4), (5) and (6) of the Cenvat Credit Rules, 2004. M....