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2017 (3) TMI 371 - AT - Central ExciseCENVAT credit - Rule 6(3) of the CCR, 2004 - import of e-bikes in CKD condition - whether the credit lying in CENVAT account shall lapse, being unutilised? - Held that: - appellant is importing e-bikes in CKD condition and clearing the same alongwith indigenously procured battery and paying duty thereon. Therefore, the e-bikes has became exempt from duty w.e.f. 29.04.2008. It is also admitted fact that as appellant was not maintaining separate account of inputs, therefore, the appellant start paying 10% of the value of e-bikes as per Rule 6(3) of the Cenvat Credit Rules, 2004 on their clearances. In that circumstances, Revenue cannot allege that the cenvat credit lying in their cenvat account on 29.04.2008 shall lapse as appellant is clearing e-bikes and parts prior to 29.04.2008 on payment of duty - provisions of Rule 11(3) of the CCR are not applicable. Appellant was not maintaining separate account for inputs used in manufacturing of e-bikes and parts thereof, therefore, provisions of Rule 6(3) are squarely applicable to the appellant as the appellant is manufacturing both dutiable and exempted final product and appellant is liable to pay 10% of the value of e-bikes at the time of their clearance and the cenvat credit lying in their cenvat account shall not lapse wholly but the cenvat credit lying in their cenvat account attributable to inputs, work in progress and finished e-bikes shall lapse. Appeal allowed - decided in favor of appellant.
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