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2016 (10) TMI 474 - AT - Central ExciseDenial of CENVAT credit - demand of duty along with interest and penalty - production of exemption certificate - clearance of exempted as well as dutiable products as per Rule 6 of the CENVAT Credit Rules, 2004 - Held that: - the Revenue has failed to appreciate the fact that inputs are available for credit at the time of start of manufacture of the goods. There is a great difference between manufacture and their clearance. In this case manufacturing process started much earlier before the date when the exemption certificate was obtained by M/s GMADA. Prior to obtaining the exemption certificate, the character of final manufactured goods was dutiable, in that circumstances, the CENVAT credit availed by the appellant is in accordance of law. The same view was taken by Hon'ble High Court of Bombay in the case of CCE, Thane I vs. Nicholas Piramal (India) Ltd. [2009 (8) TMI 224 - BOMBAY HIGH COURT]. The appellant has paid an amount of 6% of the value of exempted final product at the time of clearance of final exempted product by utilizing their CENVAT credit account. The Adjudicating Authority has not considered the fact that CENVAT credit to the extent of 6% of the value of exempted final product has already been reversed and the set off the same has granted which reveals that the demand to the extent of reversal 6% of the value of exempted goods twice taxing the appellants which not is permissible in law. M/s WCL availed CENVAT credit on the inputs for manufacturing of their final product before production of exemption certificate by M/s GMADA, the appellant has rightly availed CENVAT credit on inputs - demand of duty, interest and penalty not justified - appeal allowed - decided in favor of appellant.
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