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2023 (8) TMI 1135 - CESTAT AHMEDABADReversal of CENVAT credit - Liability to pay 10%/5% of the value of the exempted goods - common input/ input services used for dutiable as well as exempted goods - assessee has reversed the proportionate Cenvat credit on the input/ input service attributed to the exempted goods - demand dropped for extended period of limitation. HELD THAT:- It is settled that once the assessee reverse the propionate credit along with interest, if there is any delay in reversal, the demand of 10% /6%/5% of the value of exempted goods shall not be sustainable. Reliance placed in the case of COMMISSIONER OF SERVICE TAX-1, KOLKATA VERSUS M/S. SURYA VISTACOM PRIVATE LIMITED [2022 (7) TMI 719 - CALCUTTA HIGH COURT], M/S WELSPUN CORP LTD VERSUS C.C.E., - KUTCH (GANDHIDHAM) [2018 (12) TMI 165 - CESTAT AHMEDABAD], COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD-II VERSUS MAIZE PRODUCTS [2008 (8) TMI 365 - HIGH COURT OF GUJARAT AT AHMEDABAD] and COMMISSIONER OF C. EX. VERSUS MAAN PHARMACEUTICALS LTD. [2010 (12) TMI 399 - GUJARAT HIGH COURT]. In the case of M/S. SURYA VISTACOM PRIVATE LIMITED it was held that if according to the adjudicating authority, the assessee did not abide by the provisions of Rule 6(3) of the Rules, it was open to the adjudicating authority to reject the assessee’s claim as regards the disputed Cenvat credit and it could not mechanically invoke 6% Rule on the assessee. The adjudicating authority has not verified the correctness of reversal during the normal period of limitation. Therefore only for the limited purpose of verification of the amount of reversal, during the normal period, assessee’s appeal needs to be remitted back to the Adjudicating authority. Assessee’s appeal is remanded to the adjudicating authority, for passing a de-novo order.
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