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2013 (12) TMI 80 - AT - Central ExciseDuty liability - Simultaneous benefit of Notification No.29/2004 and Notification No.30/2004 Taken – benefit of CENVAT cannot be taken on duty paid on inputs -Whether subsequent reversal of proportionate CENVAT Credit at the end of the month in respect of the inputs used in manufacturing of final product cleared under Notification No.30/2004 would amount to a situation as if CENVAT Credit was not availed – Held that:- Relying upon Hello Minerals Water (P) Ltd. v. Union of India [2004 (7) TMI 98 - HIGH COURT OF JUDICATURE AT ALLAHABAD] - Reversal of Modvat credit amounts to non-taking of credit on the input - the benefit has to be given of the notification granting exemption/rate of duty on the final products since the reversal of credit on the input was done at the Tribunal’s stage. There is reversal of CENVAT Credit, the question of discharge of duty liability does not arise, but the appellant is required to pay interest in accordance with the provisions of law on the amount reversed belatedly . In order to quantify the correct amount of interest liability on the appellant, he has not reversed the CENVAT Credit attributable to the inputs, the matter remanded back to the lower authorities for limited purpose of quantifying the amount of interest on the belated reversal of CENVAT Credit by the appellant, wherein they had reversed the CENVAT Credit not at the end of the month when the clearances took place, but subsequently - The penalties imposed are unwarranted and set aside – Decided partly in favour of Assessee.
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