Court Reverses CENVAT Credit Decision; Misinterpretation of Rule 6(3)(b) on Duty and Exempt/NIL Rated Goods Highlighted.

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....Reversal of CENVAT Credit - the object of both the provisions is clear and the only difference is that Chapter X uses the word “remission” of duty on excisable goods” and Central Excise Rules 2001 used the word ”exemption of duty to excisable goods”. None of these words have been defined in the Central Excise Act. - the adjudicating authority has failed to appreciate that Rule 6(3)(b) is applicable where the manufacturer is manufacturing two separate products one being charged to duty and another being exempt from payment of duty or is charged with ‘NIL’ rate of duty. - AT....