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2018 (1) TMI 484 - AT - Central ExciseCENVAT credit - case of respondent is that the credit was available to them prior to amendment in Rule 7(d) of the CCR, 2004 and therefore they cannot be asked to follow the said Rule 7(d) - Section 38A of the Central Excise Act - Held that: - the said rule permits distribution of cenvat credit. Any duty paid by the assessee does not automatically become cenvat credit. Any duty paid by the assessee which qualifies the test of Rule 3 of the CCR, 2004 can become cenvat credit when the same is availed by the assessee as cenvat credit - In any case Uni Deritend Ltd. has availed the credit of duty paid by them after the amendment and thus the law as it existed at the time when they converted the duty paid by them into cenvat credit would be the law applicable to the said credit, since at the time of availing cenvat credit, sub-rule (d) of Rule 7 and Explanation 3 of the said rule was in existence at the time of availing credit. Uni Deritend Ltd. was required to follow the same and avail the credit only in terms of Rule 7(d) read with Explanation 3 - demand of reversal of credit upheld. Penalty - Held that: - since the demand of duty under Section 11A(4) of the Central Excise Act, 1944 is upheld, the assessee is liable to mandatory penal provisions of Section 11AC of the Central Excise Act, 1944 - penalty upheld. Appeal allowed - decided in favor of Revenue.
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