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2017 (3) TMI 855 - AT - Central ExciseReversal of cenvat credit - Benefit of N/N. 3/2001-CE dated 1.3.2001 and N/N. 6/2002-CE dated 1.3.2002 - CENVAT credit availed on goods exempted by notification - violation of condition of notification - Held that: - the exemption is available to the respondent if the vehicles are manufactured out of chassis's falling under chapter heading 87.06 on which the duty of excise has been paid and no the credit of duty paid on other inputs for fabrication of bodies of that chassis has been taken. Admittedly in this case the respondent has taken the credit on inputs, therefore, the respondent is not entitled for exemption. Moreover, the case of the Revenue is that the respondent has availed exemption, in that circumstance, the goods to be treated as exempted goods and the respondent is liable to pay 8% of the value of the exempted goods which means chassis plus body. Admittedly, in this case, the respondent has not paid the amount of 8% of the value of chassis at the time of clearance of motor vehicle, therefore, the respondent has not paid the correct amount under Rule 6 (3) (b) of Cenvat Credit Rules, 2001 - demand of duty alongwith interest upheld. Penalty - Held that: - As there is a difference opinion on the issue of imposing penalty on the respondent, therefore the matter be placed before the Hon’ble President to appoint third Member. Appeal disposed off - matter on remand.
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