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2016 (12) TMI 159 - AT - Central ExciseReversal of credit of ADD - Nickel Cathodes and Nickel HP Squares - clearance of goods to sister concern as such - Rule 3(5) of Cenvat Credit Rules, 2004 - Held that: - It is seen from a plain reading of the Rule 3(5) that when the inputs on which Cenvat Credit has been taken are removed as such from the factory the manufacturer is required to pay an amount equal to the credit availed on such inputs - The fact that the party had reversed the credit on basic excise duty but did not reverse the credit on account of special additional duty has not been satisfactorily explained by the Director in his replies during the statement particularly since the law is quite unambiguous and when they were reversing the credit of special additional duty for the removal to other customers. The entire situation also needs to be seen in the context that the appellants are registered with the department for a long time and are well aware of the laws and procedures. Very clearly, there is an element of suppression and intention to evade duty. Revenue neutrality - Held that: - if the situation was revenue neutral, as argued by appellants, there was no need to even to reverse the input credit of basic excise duty - the plea of revenue neutrality in the instant case is not acceptable. The order passed by Commissioner (Appeals) is legal and proper and does not call for any interference - appeal dismissed - decided against appellant-assessee.
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