2022 (12) TMI 134

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....they are manufacturing dutiable as well as exempted goods by using cenvated inputs and the appellant have reversed 6% of the value of exempted goods in terms of Rule 6(3) of Cenvat Credit Rules, 2004. Whether after such compliance, there is any contravention of condition of Notification No. 30/2004-CE dated 09.07.2004 which in order to avail it, stipulates that assessee should not avail Cenvat credit. 2. The Adjudicating Authority has confirmed the demand of excise duty denying exemption Notification No. 30/3004-CE on the ground that once the appellant have availed Cenvat credit on inputs there is contravention of condition of notification hence, the appellants are not entitled the exemption notification. Challenging the adjudication order....

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....made an error therefore, Revenue's appeal may be allowed. 5. We have considered the submissions made by both the sides and perused the record. We find that there is no dispute in the facts of the case that appellant have availed exemption Notification No. 30/2004-CE which contains following condition:- "Provided that nothing contained in this notification shall apply to the goods in respect of which credit of duty on inputs or capital goods has been taken under the provisions of the CENVAT Credit Rules, 2002." In the above condition, it is provided that in order to avail notification appellant should not have availed Cenvat credit. 6. The relevant sub rule (3D) of Rule 6 is reproduced below:- (3D) Payment of an amount under sub-rule....

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....at credit not taken for the purpose of an exemption notification wherein any exemption is granted on the condition that no Cenvat credit of inputs and input services shall be taken." 5. From the plain reading of the above provision, it is observed that the provision of sub Rule (3D) was specifically provided under the statute to meet with the situation as existing in the present case. The appellant have reversed or paid the amount in terms of sub Rule (3) of Rule 6, therefore, as per sub Rule (3D), it will amount to not taking of Cenvat credit and when this be so, the condition of Notification No. 30/2004-CE stands complied. 6. The very same issue has been considered by this Tribunal in the case of Spentex Industries Limited (supra) whe....