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2011 (8) TMI 593 - HC - Central ExciseReversal of Cenvat Credit - Assessee manufacturer of packet tea - took credit of input goods till 27 feburary 93 from next day final product became exempted - Show cause issued demanding reversal of cenvat credit - Assesssee replied since credit was taken when final product was dutiable thus reversal is unjustified - Held That:- MODVAT credit taken in respect of inputs will have to be reversed when final product becomes exempt at a date subsequent to the receipt of inputs. Reliance placed on Super Cassettes Industries Ltd. (1997 - TMI - 44650 - HIGH COURT OF JUDICATURE AT ALLAHABAD). Decided against assessee. Extended period of limitation - Held That:- In view of the decision in Calcom Electronics Pvt. Ltd. v. CCE (2000 - TMI - 49978 - CEGAT, COURT NO. II, NEW DELHI), credit of duty utilised in the manufacture of exempted goods is required to be reversed without any reference of time limit, and that Show Cause Notice even after six months is not time barred having regard to the language of Rule 57-I (2). - Decided against assessee.
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