Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (6) TMI 869 - AT - Central ExciseClaim of refund of amount of cenvat credit reversed - W.e.f. 1/5/2006 appellant opted for payment of duty as per the Compounded Levy Scheme in terms of notification No. 34/2001-CE dated 28/06/2001 - At the time of opting for the benefit of this notification, there was stock of inputs, work in progress, components inputs, as well as finished goods, containing inputs on which CENVAT Credit was availed. The appellant paid the amount of ₹ 733739/- (CENVAT duty) and ₹ 14675/- (Education Cess) towards reversal of the CENVAT Credit taken on the inputs as on the date of opting for the notification. Subsequently, the appellant claimed refund of such amounts paid which was rejected by the Original Authority. Held that:- for availing the Compounded Levy Scheme, no credit of duty paid on raw materials, components parts etc. is allowed to be taken. However, the Revenue expanded the scope by interpreting that the credit of duty on the inputs, contained in work in progress and the finished products lying in the stock on the date of opting for the notification needs to be reversed as condition precedent to avail the benefit of the notification. - the credit of duty taken and utilized in respect of not only inputs in stock, but also contained in finished products as on the date of introducing, the Compounded Levy Scheme is not recoverable. - Refund allowed - Decided in favor of assessee.
|