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2016 (6) TMI 572 - AT - Central ExciseExemption for manufacturing of body building on the procured chassis - condition on availing credit versus availing credit and reversing the credit @8% - notification 4/97 dated 01.03.1997 and subsequent notification no. 5/98 dated 02.06.1998 - whether the assessee was entitled to the exemption or not? - Held that:- As rightly observed by Commissioner (A) the assessee has reversed 8% of the value (whatever value it may be) that is whether inclusive of chassis or not, which would amount to reversal of cenvat credit availed by the assessee. However, we find that though the legal issue held in favour of the assessee by Commissioner (A) is correct but the fact as to whether the reversal of 8% amounted to full reversal of cenvat credit availed by the assessee or not is still required to be examined. It may happen that the reversal of 8% is less than full credit availed by the assessee or in a given case it can be more also. As such it is absolutely necessary for the assessee so as to earn the benefit of the exemption notification to establish that the entire credit availed by them in respect of the inputs used in the manufacture of exempted goods stands reversed by them. If there is shortfall in such reversal, the assessee is required to be given an opportunity to reverse the same. At this stage both the sides submits that it may not be possible for them to exactly find out as to which input has gone into the manufacture of which vehicle that is whether excisable or dutiable. The said exercise of finding out the quantum of input used in the manufacture of inputs and contested quantum of credit availed can be done on proportionate basis for which purpose we set aside the impugned order and remand the matter to original Adjudicating Authority. The adjustment required to be done by him with the corporation of the assessee would be to find out quantum of inputs used in the manufacture of exempted product and consequently quantum of credit availed by the assessee. Subsequently by taking note of the 8% reversal already done by them, the quantum of differential credit, if any, would be arrived at which the appellant would be liable to reverse, so as to set the matter at rest.
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