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2012 (4) TMI 529 - AT - Central ExciseCENVAT Credit - Re conditioning of machines - Nexus with manufacturing activity - Held that:- appellant has cleared the re-conditioned machines on payment of duty and their rebate claim was also rejected. Such payment of duty in excess of the credit availed tantamounts to reversal of credit and there is no need to once again reverse the Cenvat credit taken. In a similar situation, the Hon’ble Apex Court in the case of CCE, Vadodara v. Narmada Chemattur Pharmaceuticals Ltd. [2004 (12) TMI 93 - SUPREME COURT OF INDIA] held that when Cenvat credit wrongly availed is exactly equivalent to the amount of duty paid, the consequence is revenue neutral and hence the demand for such wrong availment of credit is not sustainable in law. The ratio of this judgment squarely applies to the facts of the present case. So is the judgment of this Tribunal in the case of Vickers Systems International (2007 (12) TMI 140 - CESTAT, MUMBAI). Respectfully following these decisions - Decided in favour of assessee.
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