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2017 (12) TMI 1090 - AT - Central ExciseCENVAT credit - Rule 3(4A)(a) of the CCR, 2002 - credit is reversed while clearing the goods on commercial invoice - Held that: - Legislature has provided the rule keeping all the factors in mind. Any interpretation which makes part of the text of law for otios cannot be considered a proper interpretation - the interpretation that reversing the credit amounts to not taking credit at all would make proviso to Rule 3(4A)(a) of Cenvat Credit Rules, 2002 otios. In these circumstances such interpretation cannot be accepted. Revenue neutrality - Held that: - Once the option to pay tax on the transaction value for certain goods is allowed it is possible that goods may be sold at a loss and therefore duty paid in respect of such goods can be less than the credit taken by the appellant. The proviso to the sub rule has been introduced to take care of such situation. It is possible for a dealer to misuse the rule by making the sale of loss making goods against the Cenvatable invoice and profit making goods by reversal of credit. In those circumstances there will be revenue loss. Appeal dismissed - decided against appellant.
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