TaxTMI 
TaxTMI 
2023 (5) TMI 1187
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....oner of Central Excise, Virudhunagar Division for wrong availment of input tax credit of amount paid on fully exempted goods as per Sl. No. 90 of Notification No. 04/2006-C.E. dated 01.03.2006, as amended. 2.1 The appellant are engaged in the manufacture of safety matches who have purchased paper / paper board from paper / paper board manufacturers (principal manufacturer) and used the same in the manufacture of final products, as inputs, and avail CENVAT Credit in respect of the duty paid on such inputs. The principal manufacturer has paid duty on paper / paper boards at a concessional rate of 4% as available under Sl. No. 91 of the table annexed to Notification No. 04/2006-C.E. without availing full exemption up to the first clearances....
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..../2006-C.E. dated 01.03.2006 is not an absolute one and as such, the CENVAT Credit taken based on duty paying documents is regular. 5. When the appeal was posted for hearing, none appeared for the appellant. However, written submissions were filed with a request to dispose of the appeal on the basis of the submissions made. 6.1 In the written submissions, the appellant through its Managing Director, has put forth that the Tribunal, Chennai Bench, in various cases has held that the exemption is not an absolute exemption, but a conditional exemption and therefore, it is not mandatory to avail such exemption as per Section 5A (1A) of the Central Excise Act, 1944. As such, payment of Central Excise Duty by the paper / paper board manufactu....
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.... avail 'nil' rate of duty as provided under Sl. No. 90 and consequently, whether the appellant herein is eligible for availment of CENVAT Credit of the duty paid by the principal manufacturer? 9. We find that the issue involved in this appeal is no more res integra and stands decided by the orders of the Tribunal in various cases cited supra which have been relied upon by the appellant in support of their contention. 10.1 In the case of M/s. Kovai Maruthi Paper and Boards & ors. v. Commissioner of Central Excise, Salem [Final Order Nos. 41301-41309/2018 dated 11.04.2018], the Chennai Bench of the Tribunal had examined whether the principal manufacturers should compulsorily avail the exemption under Sl. No. 90 of the said Notification ....
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....ke of convenience:- 9. The common issue that arises for consideration in all these appeals is whether the assessees are eligible to avail exemption as per the Notification No. 4/2006 under Sl. No. 91 and clear the goods on concessional payment of duty or whether it is mandatory to avail 'nil' rate of duty as provided under Sl. No. 90. This Bench relying on the decision of Balakrishna Paper Mills & Others (supra) had thus concluded that the demand raised by the Revenue could not be sustained. On a reading of the above order of this Bench we find that the issue is no more res integra and therefore, we follow the same ratio decidendi to hold that the demand raised by the Ld. Commissioner is wrong and set aside the findings of....