TaxTMI 
TaxTMI 
2023 (6) TMI 367
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....s and intermediates; they are availing CENVAT credit; during the course of conduct of an Audit, it appeared to the Department that the appellants are manufacturing and exporting medicaments, some of which are non-excisable, some excisable and some other are exempted from duty when cleared for home consumption and that the respondents neither reversed any CENVAT credit involved on the inputs/raw materials used in the manufacture of non-excisable goods nor paid amount equal to 10% of the value of the goods cleared for export under bond/LUT. A show cause notice dated 03.05.2011 was issued to the respondents. Adjudicating Authority vide order cited above has dropped the proceedings initiated vide above cited show cause notice. The order was rev....
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....aying such amount in case of non-excisable goods manufactured and exported by them under bond/LUT. Learned Counsel for the respondent submits that the issue is no longer res integra being decided by the Hon'ble Bombay High Court in the case of Repro India (supra). We find that Hon'ble High Court observes, after analysing the provisions of Rule 6(5) of CENVAT Credit Rules, 2004 that: Para 9 ---- A perusal of the aforesaid Rules would clearly show that subrule (i) to (vi) are identical and the difference in Rule 6(6) of the Cenvat Credit Rules, 2004 and Rule 6(5) of the Cenvat Credit Rules, 2002 is not relevant for the purpose of the present case. Rule 6(1), 6(2), 6(3) and 6(4) of the Cenvat Credit Rules under Cenvat Credit ....
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....e of Commissioner Vs Drish Shoes Ltd. [2010 (254) ELT 417 (HP] observes that: Para 6. Further, this issue came up before the Hon'ble High Court in the case of Drish Shoes Ltd. (supra) wherein the facts were the assessee were manufacturers of finished leather and finished leather was exported. After export they claimed refund on account of CENVAT credit paid on inputs, which were purchased for finishing the export goods. Refund was sought to be denied under provisions of Rules 5 and 6 of CENVAT Credit Rules, 2002. Thereafter the Hon'ble High Court examined the issue and held as under: "16. The Scheme of CENVAT Credit Rules, 2002, as also 2004, reference to the relevant provisions of which has been made hereinabove, ....
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....a, while dealing with a similar situation and interpreting the provisions of Rule 6(5) of CENVAT Credit Rules, 2002 and Rule 6(6) of CENVAT Credit Rules, 2004, has held that expression "excisable goods" is wider than the expression "exempted goods, as it includes both dutiable as also exempted goods. 20. In view of the above discussion, we hold that an assessee, manufacturing goods chargeable to nil duty, is eligible to avail CENVAT credit paid on the inputs under the exception clause to rule 6(1), as contained in 6(5) of CENVAT Credit Rules, 2002 and Rule 6(6) CENVAT Credit Rules, 2004, used in the manufacture of such goods, if the goods are exported Question No. 1 is answered accordingly. 21. As regards question No. 2, i....