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2015 (8) TMI 1315 - AT - Central ExciseCenvat demand - glass bottles of Aerated water - breakage during the handling in the factory premises of the appellant - period involved is May to June, 2005 and March to June, 2006 - Held that:- during the relevant time, there were no provisions contained in the above Cenvat Credit Rules requiring the manufacturer to reverse the cenvat credit taken on the inputs destroyed in the factory. The provision for reversal of cenvat credit came into effect from 07.09.2007 through insertion of sub-rule (5C) into Rule 3 in the Cenvat Credit Rules. Since the said rule has not been given the retrospective effect, I am of the opinion that in the absence of any specific provisions at the material time to which the present dispute relates, there was no requirement of reversal of cenvat credit. I find support from the judgment of Hon'ble Allahabad High Court in the case of Commissioner of Central Excise vs. M. Kumar Udhyog (P) Ltd. [2014 (7) TMI 832 - ALLAHABAD HIGH COURT] wherein, it has been held that when the period involved prior to introduction of sub-rule (5C) into Rule 3 of Cenvat Credit Rules, 2004, the Department cannot insist for reversal of cenvat credit on the inputs destroyed within the factory. - Decided in favour of appelant
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