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2014 (6) TMI 482 - CESTAT NEW DELHIDenial of the Cenvat credit - area based exemption - benefit of Notification No. 33/99, dated 8-7-1999 - Held that:- provisions of Rule 12 of Cenvat Credit Rules, 2004 are specific to the fact that any clearance made in terms of Notification No. 33/99-C.E., dated 8-7-1999, which entitles the manufacturer to claim refund of duty paid out of PLA would not be treated as exempted goods and the Cenvat credit on such inputs shall be admissible. Commissioner (Appeals) has not taken note of the said Rule, while directing the deposit of Rs. 20 lakhs. As per the learned advocate, his intention was drawn to the same. As regards endorsement, it stand clarified that same is in respect of VAT paid under Assam Value Added Tax Rules, 2005, which requires an assessee to endorse the said words on the tax invoice. This issue was addressed by the Additional Commissioner having jurisdiction over the appellants factory by writing a letter to the Commissioner, Guwahati in response to the said query, vide his letter dated 2-2-2012 clarified that in compliance of Rule 32 of said Assam Value Added Tax Rules, 2005, duplicate copy of the invoice bear the word ‘this copy does not entitle the holder a tax credit”. Inasmuch the said endorsement was in respect of VAT paid in the Assam Laws Added Tax Rules, such endorsement cannot be adopted by the Excise authorities for denial of Cenvat Credit of Excise duty paid on the same. As such, I find that the appellants have a good prima facie case in its favour and no pre-deposit directions should have been made by the Commissioner (Appeals) - Matter remanded back - Decided in favour of assessee.
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