Case Law Details
Union of India Vs Kanchan India Limited (Rajasthan High Court)
In the present case appellant has opted for exemption as per the Notification No.30/2004-CE where the exemption is conditional. As per Rule 11(3) (ii) CCR, Cenvat Credit balance will lapse only if the product is exempted absolutely under Section 5A of Central Excise Act. But since the Notification No.30/2004-CE dated 09.07.2004 is a conditional notification, hence only Rule 11(3)(1) of CCR would apply which does not mandate any such lapsing.
In the present case , the goods are conditionally exempt, as is evident from S. No. 10 of the notification no.30/2004. As the goods are not absolutely exempt and the exemption is granted only on fulfillment of certain conditions, clearly Rule 11(3) (1) of the Rules of 2004 would apply.
In the present case as well, the exemption is not absolute but conditional upon fulfillment of certain stipulations. The assessee was entitled to the benefit of Rule 11 (3)(i) of the Rules of 2004.
FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT
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