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2018 (11) TMI 1205 - AT - Central ExciseDenial of Rebate claim and demand of duty - credit reversed is claimed by the appellant as rebate considering the clearances to SEZ Unit as export, in terms of SEZ Act and Rules - Revenue’s case is that the portion of the H.R.Coils, which are slit to the dimensions as per the requirement of their SEZ Unit are not intended for use in the DTA Unit and as such will not be entitled to the cenvat credit - Held that:- The appellant, instead of receiving the H.R.Coils in the factory and availing cenvat credit and subsequently sending them to job workers for slitting, has chosen to directly send the coils to the job workers for slitting and availed cenvat credit only after receipt of the sheets. There is no infirmity in such procedure. Rule 4 (5) of the Cenvat Credit Rules, 2004, provides for clearing the inputs for carrying out various processes. Rule 3(4)(b) of the Cenvat Credit Rules, 2004 provides that inputs on which cenvat credit have been availed may be cleared as such subject to reversal of the proportionate credit. Since slitting of coils into sheets does not amount to manufacture, for clearance of sheets received to SEZ Unit, the appellant was required to only reverse the proportionate credit. Since, there is no dispute that such reversal have been made, there is no scope for ordering payment of any other amount. The lower adjudicating authority appears to have proceeded on a completely wrong footing by considering the slit sheets as inputs for the appellant. He has overloaded the fact that the items procured on which cenvat credit stands availed are H.R.Coils procured from SAIL. Considering H.R.Coils as input, the cenvat credit cannot be denied. Appeal allowed - decided in favor of appellant.
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