2008 (6) TMI 35

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....ity confirmed a demand of Rs. 36,343/-, demanded appropriate interest and imposed equal amount penalty. The amount was demanded in terms of Rule 6(1) of Cenvat Credit Rules, 2002 (CCR) which lays down that CENVAT credit is not allowed on inputs which are used in the manufacture of exempted goods. In the impugned order the Commissioner (Appeals) set aside the order of the original authority on the basis that the order was inconsistent with the provisions of sub-rule 1, 2, 3, 4 and 5 of Rule 6 of CCR, 2002. Revenue has filed the present appeal against the impugned order. The grounds taken in the appeal are that the Commissioner (Appeals) has misinterpreted the provisions in passing the impugned order. Rule 19 did not apply when goods are exem....

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.... 5. As regards Cenvat credit relatable to the inputs contained in the exported final products sub-rule 1 of Rule 6 regulates availment of credit of duty paid on inputs in respect of exempted final products. Rule 6 of the CCR, 2002 reads as follows "RULE 6. Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services. — (1) The CENVAT credit shall not be allowed on such quantity of input or input service which is used in the manufacture of goods or for provision of exempted services,] except in the circumstances mentioned in sub-rule (2)." Provided the cenvat credit on inputs shall not be denied to job worker referred in rule 12B of the Central Excise Rules, 2002 on the ground that the said inp....