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2017 (12) TMI 1875 - AT - Central ExciseCENVAT Credit - primary argument of UniDeritend Ltd. is that the credit was available to them prior to amendment in Rule 7(d) of the Cenvat Credit Rules, 2004 and therefore they cannot be asked to follow the said Rule 7(d) - Penalty - HELD THAT:- In the instant case, while the invoices were raised prior to the amendment, there is no evidence if the payment was made prior to the amendment. Thus if the credit was available prior to the amendment is also a doubtful proposition. In any case UniDeritend Ltd. has availed the credit of duty paid by them after the amendment and thus the law as it existed at the time when they converted the duty paid by them into cenvat credit would be the law applicable to the said credit. Since at the time of availing cenvat credit, sub-rule (d) of Rule 7 and Explanation 3 of the said rule was in existence at the time of availing credit, UniDeritend Ltd. was required to follow the same and avail the credit only in terms of Rule 7(d) read with Explanation 3. In these circumstances, the demand of reversal of credit is upheld. Penalty - HELD THAT:- The plain language of the Rule is very clear and leaves no scope for doubt. Under these circumstances, imposition of penalty is justifiable. Appeal of UniDeritend Ltd. is dismissed and appeal of Revenue is allowed.
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