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2016 (6) TMI 435 - AT - Central ExciseRecovery of differential duty - inputs cleared as such to other sister units by reversing the credit availed on such inputs, instead of discharging the duty on the value of the inputs at the time of its clearance from their factory to their sister units, as per Rule 3(4) of Cenvat Credit Rules, 2001/2002 - Held that:- Undisputedly the appellant had cleared "inputs" on which CENVAT Credit was availed during the period June 2001 to February 2003 to their sister concerns. While clearing the said inputs, as such, they reversed the CENVAT credit availed on such inputs at the time of its receipt of the same at their premises. The Revenue objected to the said method alleging that as per Rule 3(4) of Cenvat Credit Rules, 2001/2002, the appellants were required to pay duty on the value of the said inputs. The adjudicating authority, however dropped the proceeding on the basis of amended provision which came in to force w.e.f 01.03.2003. We find that on an Appeal filed by the Revenue, the learned Commissioner (Appeals) after applying the correct position of law confirmed the demand against the appellant. We find that the adjudicating authority while deciding the show cause notice adopted the amended provision of Rule 3(4) of CCR,2001/2002 which came into force from 01.03.2003 instead of Rule 3(4) as was in existence during the relevant period June 2001 to February 2003. - Decided against assessee.
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