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2015 (2) TMI 38 - AT - Central ExciseWaiver of pre deposit - CENVAT Credit - Bar of limitation - benefit of Notification No. 06/2006- CE dated 01/03/2006 - Non maintenance of separate accounts - Held that:- Cenvat Credit Rules, envisages availment of Cenvat credit only when the inputs, inputs services, capital goods are used in or in relation to manufacture of dutiable final products, except in certain situations where the goods are cleared for exports or supplied to UN and other agencies or the clearances are effected under 7 specified notification under the 3 rd proviso to Rule 3 (4) of Cenvat Credit Rules. In all other cases, the conditions for availment of credit has to be scrupulously satisfied. Where the goods are exempted from payment of duty, Cenvat Credit Rules, 2004 does not provide for availment of credit. As per sub-rule (1) of Rule 6, "Cenvat Credit shall not be allowed on such quantity of input used in or in relation to the manufacture of exempted goods or for provision of exempted services", This position has been clarified by the Hon'ble Apex Court in the decision relied upon by the Revenue in the case of Amrit Paper (cited supra). Further even in respect of goods on which payment of duty is remitted, Cenvat credit has to be reversed as per Rule 3 (5C) of Cenvat Credit Rules. Prima facie appellant has not made out any case on merits for a complete waiver of pre-deposit adjudged against the appellant. However, there appears to be some merit in the appellant's contention that part of the demand is time barred inasmuch as in respect of the other unit of the appellant where identical goods were manufactured, the appellant has been disputing the demand for reversal of credit and the appellate authority had confirmed the duty demand only for the normal period of limitation and the demand for the extended period was dropped on account of time bar. In the present case, the demands for the normal period of limitation as informed to us by the appellants is approximately ₹ 19 lakhs. Therefore, we direct the appellant to make a pre-deposit of ₹ 19 lakhs within a period of four weeks - Partial stay granted.
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