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2022 (4) TMI 423 - CESTAT AHMEDABADCENVAT Credit - common inputs and input services which have been used in the manufacture of dutiable and exempted goods - non-maintenance of separate records - requirement to pay 5%/10% as per Rule 6(3)(A) of Cenvat Credit Rules, 2004 - HELD THAT:- It is not in dispute that the appellant have admittedly reversed the proportionate credit. Therefore, reliance placed on Hon’ble Supreme Court in the case of CHANDRAPUR MAGNET WIRES (P) LTD. VERSUS COLLECTOR OF C. EXCISE, NAGPUR [1995 (12) TMI 72 - SUPREME COURT], reversal of Cenvat Credit shall amount to non-availment of Cenvat Credit, if this be so, then Rule 6 is not applicable. Alternatively, once, the appellant have reversed the Cenvat Credit proportionately, they have opted for the reversal of proportionate credit then the Revenue cannot insist for some other option which the appellant has not opted for - As regard, non-filing of the declaration, which is only the procedural requirement. Due to lapse of procedural requirement, substantial benefit of proportionate reversal of Cenvat credit cannot be objected to. From the details asked for in the declaration, it is found that the same is otherwise available with the department, therefore, even if the details were not declared in the prescribed form but the details are otherwise required to be declared in the form are otherwise available with the department, therefore, mere non filing of declaration cannot be the reason that the appellant’s option for the proportionate reversal is not available. No further payment can be demanded from the appellant - Appeal allowed - decided in favor of appellant.
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