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2018 (7) TMI 772 - CESTAT AHMEDABADCENVAT Credit - value based exemption availed - contention of the department is that since the appellant was availing value based exemption, therefore, the credit lying in balance as on 31/03/2010 would lapse in accordance with Rule 11(2) of CENVAT Credit Rules, 2004 - whether the appellant had correctly availed CENVAT Credit of ₹ 5,30,300/- lying in balance as on 31/03/2010 and also credit of ₹ 5,74,902/- availed during the Financial Year 2010-11? - Time limitation - Held that:- As the appellant had been availing benefit of exemption Notification, which was value based, accordingly, the credit of ₹ 5,30,300/-, lying as on 31.3.2010 would lapse and is inadmissible to the appellant in the year 2010-11. In Clause- 2(d)(iii) of the Notification 08/2003, a specific condition has been prescribed that manufacturer cannot avail CENVAT Credit on inputs used in the manufacture of specified goods up to the aggregate value of first clearance not exceeding ₹ 150.00 Lakhs. Therefore, non-compliance of the same would result in inadmissibility of the credit, on the inputs even though the appellant had complied with the Rule 6(3) of CENVAT Credit Rules, 2004 - it is found that the department while denying the said credit adjusted the amount paid under Rule 6(3) of CENVAT Credit Rules. Thus, the appellant are not entitled to CENVAT Credit both the amounts i.e. ₹ 5,30,300/- and also 5,74,902/-. Time limitation - Held that:- The department is fully aware of the fact that the appellants are availing benefit of SSI exemption Notification for clearance of the goods manufactured on their on behalf and also manufacturing branded goods for others. All these facts are reflected in their monthly Returns filed from time to time - Therefore, SCN issued on 09/9/2014 for recovery of the excess credit inadmissible availed in 2010-11 is barred by limitation. Appeal is allowed on the ground of limitation.
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