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2016 (12) TMI 1379 - AT - Central ExciseReversal of credit - Subrule (3A) (a) of Rule 6 of Cenvat Credit Rules, 2004 - Rule 6(3)(ii) - whether the appellant is reqiured to reverse CENVAT credit availed under Rule 6(3)(ii), as claimed by the Revenue? - Held that: - as per amended Rule 6(3) (i) & (ii) read with subrule (3A), the option is available to the assessee whether to pay 10% of the value of the exempted goods or to pay equivalent Cenvat credit attributable to the input used in the exempted goods. The department has no say that which option has to be availed by the assessee. In the present case the appellant have opted for payment of proportionate Cenvat credit in terms of Rule 6(3)(ii) of Cenvat Credit Rules, 2004, which in my considered view is not incorrect. At the most if any lapse is there that is, appellant have not given written option to the department. In my view it is only a procedural lapse and for such procedural lapse, appellant cannot be fastened with demand of 10% of the exempted goods - the payment made by the appellant themselves equivalent to the Cenvat credit attributable to the input used for the exempted goods is in order. therefore no further demand could have been made from the appellant. Appeal allowed - decided in favor of appellant.
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