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2016 (12) TMI 390 - AT - Central ExciseCENVAT credit - manufacture of Printing Inks, Resins etc falling under Chapter 32 and 39 of Central Excise Tariff Act, 1985 and registered with the Central Excise Department w.e.f. 29.05.2009 - After Registration, on receiving various inputs, they availed CENVAT Credit on the same and later, the said inputs were removed as such to their sister concern, on reversal of credit availed on such quantity of input due to delay in commercial production which commenced only in October 2010 - whether CENVAT credit availed is correct? - Held that: - I find that because of non-receipt of various statutory permissions as well as electricity and water connections, the Appellants could not commence the commercial production during the said period, accordingly, to avoid the damage to the inputs received and lying in stock were cleared to their sister concern on reversal of credit availed on such inputs under proper excise invoices mentioning the relevant rule 3(5) of CCR,2004. All these facts have been disclosed by the Appellants in their statutory ER1 returns. The sample copy of ER1 return filed by the Appellant for the month of March 2010 duly acknowledged by the Department reveals that they have discharged the credit availed by them during the relevant period on clearance of inputs. Also, the statement furnished by the learned Chartered Accountant for the Appellant, which was submitted along with reply to the Show Cause Notice, indicates that receipt of inputs and clearance of the same as such were made on payment of appropriate duty/reversal of credit initially availed. Besides, it is also not in dispute that the commercial production started from Oct. 2010 - demand set aside - appeal allowed - decided in favor of appellant-assessee.
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