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2018 (6) TMI 627 - AT - Central ExciseReversal of CENVAT credit - inputs sent for job-work - it was alleged that the appellant had not reversed credit availed on inputs when the inputs were sent for job work and thus violated Rule 3(5) of CENVAT Credit Rules, 2004 - Held that:- There is no dispute that the inputs supplied to job worker for manufacture of wooden crates which were used for packing of finished products by the appellant. The removal of goods for job work credit of the duty paid cannot be considered as removal of inputs 'as such' as it envisaged in Rule 3(5) of CENVAT Credit Rules, 2004. The said rule requires for reversal of credit when inputs are removed as such, while Rule 4(5)(a) contemplates the situation when goods are removed and returned. Even if the appellant had reversed the credit, they would be able to take credit of the duty paid when the job worked goods / finished crates are returned by the job worker as these are cleared on payment of duty - Taking note of this fact and also the situation being a revenue neutral one, the demand cannot sustain. Appeal allowed - decided in favor of appellant.
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