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2010 (6) TMI 757 - HC - Central ExciseReversal of CENVAT credit - non-maintenance of separate accounts of inputs - Rule 6(2) of Cenvat Credit Rules, 2002 - Whether the Tribunal was correct in ignoring the statutory provisions of Rule 6 of CCR 2002 and the Board's Clarification issued vide Circular No.654/45/2002-CX dated 19.8.2002 and holding that the assessee had reversed the credit at the time of removal of goods and they are not required to pay 8% of the price of the exempted goods? - Whether the Tribunal was correct in holding that the principle laid down by the Apex Court in the case of Chandrapur Magnets case [1995 (12) TMI 72 - SUPREME COURT OF INDIA] continues to apply despite the introduction of Cenvat Credit Rules. 2002? Held that: - it is manifest on the face of the order that the Tribunal has considered all the relevant material on record and has afforded reasonable opportunity and by placing reliance on the notification and also the judgment of the Apex Court in the case of Chandrapur Magnet Wires Pvt. Ltd., vs. CCE, Nagpur [1996 (81) ELT 3 (SC)] and applying the ratio of the said case to the facts in hand, has reversed the order passed by the assessing authority and held that assessee is not liable to pay 8% of the price of the exempted goods and consequently, allowed the appeal - there is no error in the Tribunal's order. The period of effect of amendment to Rule 6 of the CENVAT Credit Rules. 2002, the period is extended from 1st day of March, 2002 to the 9th day of September 2004 (both days inclusive). In the instant case, the date of removal of friction welding machines is on 1.1.2004 and the said date comes within the extended period of September 2004 as per the Finance Act. Therefore, on this ground also, the appeal filed by the appellants is liable to be dismissed. Appeal dismissed - decided against Revenue.
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