2019 (7) TMI 1350

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....egistered under the provisions of Section 68(2) of the Finance Act, 1994 under the category of 'Transportation of Goods by road services'. The respondents had exported iron ore fines and lumps falling under Chapter Heading 26.01 of the CETA, 1995 and accordingly filed refund claim for Rs. 61,77,798/- with the Assistant Commissioner, Bellary Division in terms of Rule 5 of Cenvat Credit Rules, 2004 (CCR, for short) availed on various input services used for manufacture and export of iron ore fines for the period April 2006 to March 2007. Thereafter the Assistant Commissioner of Central Excise issued a show-cause notice dt. 28/09/2007 to the respondents proposing to reject the entire refund claim of Rs. 61,77,798/- on the ground that the goods....

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....fic entry under heading 2601 of CETA and therefore they were to be termed as excisable goods and they were allowed to clear at nil rate of duty by virtue of exemption contained under Notification No.4/2006-CE dt. 01/04/2006. Further he submitted that the Commissioner(Appeals) has also held that as per the Notification No.36/01-CE(NT) dt. 26/06/2001, there was no requirement for the respondents to have obtained the Central Excise Registration in terms of Rule 9 of Central Excise Rules since the goods manufactured by them were chargeable to nil rate of duty. He further submitted that once the goods are excisable goods which are exempted by way of notification, then there was no requirement for the respondents to have obtained the registration....

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....sed the Revenue's appeal by relying upon the decision of the Tribunal and the High Court on identical issue. 6. After considering the submissions of both the parties and perusal of the material on record, we find that the Commissioner (Appeals) has rightly held that the respondents are entitled to cenvat credit and there is no provisions contained in Rule 6(1) of the Cenvat Credit Rules when the final product is exempted from Central Excise duty by virtue of Notification 4/2006 CE dated 01.03.2006. Further we find that the Commissioner (Appeals) has relied upon various decisions which have consistently held that the assessee is entitled to avail credit of service tax paid on input services when they are producing exempted excisable goods....