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2016 (3) TMI 662 - CESTAT MUMBAIExemption notification No. 64/95-CE - clearance of the goods to M/s. Mazgaon Dock which is meant for construction of Indian Navy warship - Held that:- The goods supplied should be used in the construction of warship of Indian Navy and a certificate from the Indian Navy should be produced to the Central Excise officer. In the said condition, it is no where mentioned that the goods has to be supplied to Indian Navy. Therefore, there is no dispute that the goods supplied to Mazgaon Dock for manufacture of Indian Navy warship, therefore in our considered view there is no need that the goods should be supplied to Indian Navy only. The respondent is entitled for exemption notification No. 64/95-CE (Sr. No. 21) on their goods supplied for construction of warship of Indian Navy. As regard demand under Rule 6(3)(b), we find that the respondent have admittedly reversed the cenvat credit in respect of inputs used in exempted goods at the time of clearance of such exempted goods which tantamount to non-availment of credit. This view is supported by various judgments cited by the Ld. Counsel. Moreover as per the retrospective amendment made in Rule 6 vide Finance Act; the assessee is required to reverse the actual cenvat credit attributable to exempted goods. For this reason also the demand of 8% proposed in the SCN under Rule 6(3)(b) is not correct. We are therefore of the considered view that the order passed by the Ld. Commissioner is just and legal, which does not require any interference. We therefore, uphold the impugned order and dismiss the appeal filed by the Revenue. - Decided in favour of assessee
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