Order Date: 10 August 2022

Facts-

• The Appellant, Nemlaxmi Books India Pvt Ltd and others, submitted that even though the goods were exempted but the same were exported undisputedly, the appellants are entitled for Cenvat credit in respect of the inputs used in such exempted goods.
• The Revenue contended that Cenvat is not allowed on exempted goods on the ground that the credit on the inputs used in exempted goods is not admissible in terms of Rule 6(1).

Issue-

• Whether the appellant is eligible to avail the Cenvat credit on the inputs used in the exempted exports goods?

Order-

• The Tribunal observed that there is an exception provided under Rule 6(6)(v) of Cenvat Credit Rules 2004. The sub-rules (1), (2), (3) and (4) are not applicable in case the finished goods is exported therefore, the appellants are entitled for Cenvat credit on the input used in the exports goods even though the same is exempted.
• The Tribunal also relied on the various judgments in which the similar issue was discussed.
• Accordingly, the impugned order is set aside and the appeal is allowed with consequential relief.