2024 (8) TMI 1207

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.... 2. Brief facts of the case are that the appellants cleared cotton yarn on payment of duty under Notification No.29/2004-CE dated 09.07.2004 (as it stood then) and cleared cotton at nil rate as per Notification No. 30/2004-CE dated 09.07.2004 which also co-existed with the former notification. They availed CENVAT credit of duty paid on capital goods and service tax paid on input 2 services and utilized the credit for payment of duty on finished products i.e. on export goods under claim of rebate of duty. They had not availed CENVAT credit of duty on inputs (goods). The appellant used common input services in the manufacture of dutiable as well as final products which were exempted (exported). They were paying/ reversing an amount of credit....

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....vide Final Order No. 40827/2019 dated 6.6.2019 C. Sivaraj Spinning Mills P. Ltd. Vs. CGST & CE, Madurai vide Final Order No. 41095/2024 dated 19.8.2024 She prayed that the impugned order may be set aside and the appeals allowed. 3.2 The Ld. Authorized Representative for the respondent submitted that the cotton yarn cleared by the appellant under Notification No. 30/2004-CE squarely falls under the definition 'exempted goods' as provided under rule 2(d) of CCR 2004. As such, the value of cotton yarn cleared by the appellant under Notification No. 30/2004-CE by availing full exemption, should also have been taken into account, while the appellant opted to reverse/pay duty attributable to common input services used in or in relation to man....

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....in Rule 6(5) of CENVAT Credit Rules, 2002 and Rule 6(6) of CENVAT Credit Rules, 2004, used in the manufacture of such goods, if the goods are exported. Question No. 1 is answered accordingly. Thus, it was held that even if the exempted goods are exported, credit is eligible. A similar matter was also examined by a Single Member Bench of this Tribunal in the appellant's sister concern in M/s. Sri Velayuthaswamy Spinning Mills (P) Ltd., (Unit. II) Vs. The Commissioner of GST & CE, Madurai vide Final order No. 40827/2019 dated 06.06.2019 and by the Division Bench in Sivaraj Spinning Mills P. Ltd. Vs. CGST & CE, Madurai vide Final Order No. 41095/2024 dated 19.8.2024. Both the Benches after discussing the issue in detail have held that the....