TMI Blog2006 (12) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... relief. - Appeal No. E/79/06 - Final Order No. 2083/2006 - Dated:- 19-12-2006 - [Order per] - This appeal arises from O-I-A No. 206/05-C.E., dated 20-1-05 by which the Commissioner (Appeals), has confirmed O-I-O No. 22/05, dated 23-8-05 passed by Assistant Commissioner of Central Excise, Bangalore confirming demands and imposing penalty for not having paid 8% of the sale price excluding sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for Cenvat credit on such quantity of inputs used in the manufacture of exempted goods as per sub-rule (1) of Rule 6 of Cenvat Credit Rules, 2002. 2. The appellants contention before the authorities and before the Tribunal is that before the goods were removed, they reversed the credit along with interest and the situation was that as if they have not availed the Cenvat credit and therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat Rules is not correct as the fundamental principle of Cenvat credit has not been disturbed. Once they have reversed the credit it is as good as not having taken the credit on the duty discharged and therefore, the question of reversing 8% of sale price in terms of Rule 6 of Cenvat Credit Rules does not arise. It is pointed out by learned Chartered Accountant, that the revenue has relied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to apply despite the introduction of new Cenvat Rules. The Cenvat credit is availed when duty has been paid on the inputs. The said principle continues to operate even under the new rules. Therefore, on reversal of the Cenvat credit availed on inputs on removal of exempted goods, the situation is put back inasmuch as the appellants are deemed not to have availed credit at all. This is not the sit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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