2018 (2) TMI 1398 – CESTAT NEW DELHI – TMI – CENVAT credit – bags and barrels arising in the course of manufacture, not usable – applicability of Rule 6(1) of Cenvat Credit Rules 2004 – Revenue is of the view that on the said bags and barrels, the appellant is required to pay an amount equal to 6% of the value of said goods in terms of explanation to Rule 6(1) of Cenvat Credit Rules 2004 – Held that: – The provision of Rule 6 are applicable where the assessee is manufacturing dutiable as well as exempted goods – The appellant is not manufacturing these bags or barrels, therefore, Rule 6(1) or explanation thereto is not applicable to the facts of this case – appeal allowed – decided in favor of appellant. – E/51856/2017-SM – A/50554/2018-SM
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barrels, the appellant is required to pay an amount equal to 6% of the value of said goods in terms of explanation to Rule 6(1) of Cenvat Credit Rules 2004. The matter was adjudicated, the demands proposed in the show cause notice was confirmed. Against the said order, the appellant is before me. 3. The ld. Counsel for the appellant submits that the provisions of the Rule 6(1) of Cenvat Credit Rules are not applicable to the facts of this case. As the bags and barrels were not resulted out of their manufacturing activity, therefore, provisions of Rule 6(1) or explanation thereof are not applicable to the facts of the case. He also took the support of the decision of the Hon ble Apex Court in the case of CCE Vs. West Coast Industrial Gases L
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r for provision of exempted services and the credit not allowed shall be calculated and paid by the manufacturer or the provider of output service, in terms of the provisions of sub-rule (2) or sub-rule (3) as the case may be: Provided that the CENVAT credit on inputs shall not be denied to job worker referred to in rule 12AA of the Central Excise Rules, 2002, on the ground that the said inputs are used in the manufacture of goods cleared without payment of duty under the provisions of that rule. 7. The provision of Rule 6 are applicable where the assessee is manufacturing dutiable as well as exempted goods. The appellant is not manufacturing these bags or barrels, therefore, Rule 6(1) or explanation thereto is not applicable to the facts o
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