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2017 (2) TMI 199 - AT - Central ExciseReversal of CENVAT credit - Rule 6 of Cenvat Credit Rules, 2002 - appellant cleared various consignments, availing exemption under N/N. 6/2002-CE dated 1-3-2002, At the time of clearance of the goods they have reversed the Cenvat credit attributed to the input used in the manufacture of exempted goods - whether the demand on the ground that appellant was suppose to pay 8% of the value of the exempted goods in terms of Rule 6 of CCR, 2002, justified? Held that: - demand is barred by limitation as the show cause notice was issued after one year. I also observed that since the appellant had been reversing the credit at the time of clearance of the goods on pro rata basis no further demand under Rule 6 can be made - Hon’ble Supreme Court in case of Commissioner of C. Ex. Mumbai-I Bombay Dying and Manufacturing Co. Ltd [2007 (8) TMI 2 - Supreme Court] held that in case of reversal of credit even if made after clearance of the goods before utilization of the credit i.e. sufficient requirement. The appellant was not required to pay 8% of the value of the exempted goods - appeal allowed - decided in favor of appellant.
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