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2018 (8) TMI 733 - CESTAT NEW DELHIReversal of Cenvat Credit while opting for SSI exemption - demand of credit attributable to inputs, semi finished goods and finished goods lying in stock on the date of opting for the exemption under N/N. 8/2003-CE dated 01.03.2003 - Rule 11(3) of Cenvat Credit Rules, 2004 - Held that:- The assessee is require to reverse the cenvat credit lying in their cenvat credit account on the date of opting for exemption on the inputs, semi finished goods and finished goods lying in stock on the date of opting for exemption. But the said provision does not provide that an assessee is required to pay the amount of cenvat credit in cash, if, no balance is lying in cenvat credit account - The provision of Rule 11(3) of the Rules are only the purpose that if assessee is opting for exemption, in that case assessee is required to reverse the cenvat credit on inputs, semi finished goods and finished goods lying in stock on the date of opting for exemption. It has also been provided that if exemption is absolute, in that case balance in cenvat credit after reversal, shall lapse, so provisions of Rule 11(3) are only transitional provision. As there is no balance in cenvat credit account, in that circumstances, the appellant are not required to pay cenvat credit in cash for inputs, semi finished goods and finished goods lying in stock as on 01.04.2012 - Appeal allowed - decided in favor of appellant.
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