2024 (10) TMI 1542

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....on order dated 30 May 2014 made by the Commissioner of Central Excise. 3. In the appeal memo, the following substantial questions of law have been formulated: - "1) Whether in the facts and circumstances of the case and in the law the Tribunal was right in relying upon a case, which was relied upon in a case law which was held to be per incuriam by Apex Court much before the decision of the Tribunal? 2) Whether in the facts and circumstances of the case and in law the Tribunal was right in not following the ratio delivered by Honourable High Court of Uttarakhand in the case of Hero Motocorp Ltd even though it was holding the filed. 3) Whether in the facts and circumstances of the case the Tribunal has erred in ....

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.... 6. The rival contentions now fall for our determination. 7. Rule 6 of the CENVAT Credit Rules 2004 inter alia provides that CENVAT Credit shall not be allowed on such quantity of input as is used in or in relation to the manufacture of the exempted goods or for provisions of exempted services. 8. In M/s Mahindra and Mahindra Ltd (supra), the controversy was whether auto cess and education cess could be regarded as duties of excise and based upon the same, the manufactured goods or the services provided could be regarded as exempted goods or exempted services. 9. In M/s Mahindra and Mahindra Ltd (supra), the Coordinate Bench held that having regard to the nature of the various duties or cesses, which are in addition to the duty of ....

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.... tax paid on the input service to its manufacturing units or units providing output service subject to the following conditions:- "(a) the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon; or (b) credit of service tax attributable to service in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed." 11. Rule 7(b) quoted above refers to the credit of service attributable to service used in a unit exclusively engaged in the manufacture of exempted goods or providing of exempted services, and there is a bar to the distribution of such credit. Therefore, Rule 7 would apply in the context of manu....