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2015 (10) TMI 844 - AT - Central ExciseDenial of CENVAT Credit - Conversion of EOU to DTA Unit - Carry forward of unutilized CENVAT Credit - The entire case of the Revenue is that the amounts which have been carried forward after reversal of appropriate duty on the inputs lying in stock, finished goods and WIP, the balance credit lapses as per the provisions of sub-rule 3 of Rule 11 of Cenvat Credit Rules while it is the case of the appellant that they are eligible to utilize the amount for discharge of duty liability on other products manufactured by them. Held that:- adjudicating authority has not disputed the fact that the appellant utilized the carried forward CENVAT credit towards discharge of their duty liability in respect of goods i.e. aggregates, components and parts of tractors. This undisputed facts would mean that the appellant herein was not manufacturing only exempted agricultural tractors but was also manufacturing other products on which duty liability arises. - from bare perusal of the sub-rule the same will apply only in a situation where final products are exempted and lying in stock. In our considered view the above sub-rule may not be applicable in the facts of this case which is not disputed that there is a discharge of Central Excise duty liability on the other finished products manufactured and cleared like aggregates, components & parts of tractors. - Decision in the case of Shree Baba [2014 (11) TMI 749 - CESTAT NEW DELHI] followed - Impugned order is set aside - Decided in favour of assessee.
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