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2018 (8) TMI 311 - CESTAT NEW DELHIReversal of SAD Credits - Department has alleged that quantities of wire bars cleared as such were only pertaining to the imported wire bars and therefore. Credit of Additional duty (SAD) amounting to ₹ 4,21,97,191/- should have been reversed by the appellants along with interest - Held that:- The department has taken the extreme view that all sales effected for the wire bars during the period of demand were only of the imported quantity of wire bars and therefore, the CENVAT credit of SAD pertaining to such quantities have been demanded. The department does not have any concrete evidence to establish that the inputs namely wire bars cleared as such, for sale were only from the imported quantities of wire bars on which credits of SAD has been taken by the appellants. There is no merit in demanding reversal of entire amount of SAD on the entire quantity of wire bars sold by the assessee as such since 2010 to 2011 and without any scientific or factual basis when facts remain that the as such quantities were both from imported as well as locally purchased consignments - The methodology of reversal of cenvat credit adopted by appellant is based on scientific and factual basis and therefore, the amount of SAD is reversed by them along with interest, need to be accepted. Penalty - Held that:- The proper compliance of Rule 3 of Cenvat Credit Rules, 2004 has been made - penalty not justified. Appeal disposed off.
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