TaxTMI 
TaxTMI 
2022 (12) TMI 134
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....ication No. 30/2004-CE in the fact that 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 notifi....
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.... to this extent, the Adjudicating Authority has 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 r....
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....under:- "Payment of an amount under sub-Rule (3) shall be deemed to be Cenvat 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 h....
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....ove analysis and findings, 5 Excise Appeal No. 10676 of 2019 we find the impugned order is unsustainable, and accordingly, set aside the same. The appeal is allowed." Ld. Counsel Shri Willingdon Christian invited our attention to the reply under RTI enquiry that the aforesaid decision has been accepted by the department. We find that Tribunal has considered the very same issue and also interpreted the explanation given in Rule (3) as well as the provision of sub Rule (3D) of Rule 6 and came to the conclusion that once an amount under Rule 6(3) has been paid, the condition of notification has been complied. 7. In view of above discussion and applying the ratio of above decision, we find that the demand, denying the exemptio....