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2017 (3) TMI 418 - AT - Central ExciseCENVAT credit - failure to reverse the Additional Duty of Customs (SAD @4%) on removal of inputs as such - when such components/inputs were cleared as such the Cenvat credit in respect of other components of input duty reversed but the component related 4% of Additional Duty of Customs (SAD) was not reversed - applicability of Sub section (2B) of Section 11A of Central Excise Act, 1944 - Held that: - Sub section (2B) of Section 11A is not invokable in the present case for the reason that Revenue could not establish that there was intention to pay less amount as compared to require amount because the exercise was revenue neutral - there was no need for issue of SCN in respect of said issue i.e. the demand of ₹ 2,93,33,114/- - the question of imposition of penalty of said allowed violation does not arise. Whether removal of inputs as such by the manufacturer can be treated as trading activity? - demand - Held that: - clearance of inputs as such on which cenvat credit was availed does not amount to trading and in the present case allegations are made based on the presumption that such activity as trading. Therefore, that part of the Cause Notice is not sustainable. Appeal allowed - decided in favor of appellant.
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