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2018 (11) TMI 614 - AT - Central ExciseCENVAT credit - inputs purchased from a unit of manufacturer falling in the notified order of Area Based Exemption - N/N. 56/2002 dated 6.9.2004 or N/N. 1/2010-CE dated 06.12.2010 - Rule 12 of CCR 2004 - Time Limitation. Held that:- The provisions of Cenvat Credit Rules provide that the credit of duty paid on the inputs is available to the manufacturer of such duty paid inputs and find a use in the manufacture appellants’ final products. The provisions of Rule 3 of Cenvat Credit Rules, 2004 have no ambiguity on this aspect - once the duty has been paid on the legitimately purchased inputs, the appellants are very much entitled for availing credit of the same and it will not make any difference whether the goods have been procured from a unit which is based in area-based exemption or otherwise. Provisions of Rule 12 of Cenvat Credit Rules, 2004 allow the benefit of Cenvat credit to the down-stream buyers of the inputs inspite of the facts that the manufacturer based in Area Based Exemption Notification will be entitled for a refund of part of duty paid by him on such clearances - Commissioner (Appeals) has wrongly interpreted the provision of Rule 12 of Cenvat Credit Rules, 2004 and Rule 12 does not debar the down-stream buyers of the inputs cleared from the area based exemption from availing the Cenvat credit of the duty which have been paid by them at the time of purchase of such inputs. Time Limitation - Held that:- There is no ground of invoking extended time proviso under Rule 14 of Cenvat Credit Rules, 2004 as necessary ingredients for invoking extended period of demand are not present in their case - demand is barred by limitation. Appeal allowed - decided in favor of appellant.
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