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2019 (3) TMI 1426 - HC - Central ExciseDeemed credit - Interpretation of statute - N/N. 29/96-CE (N.T.), dated 03.09.1996 as amended by N/N. 28/98-CE (NT), dated 18.07.1998 - benefit of deemed credit of duty paid on the inputs used for manufacture of final products - manufacture of various kinds of fabrics - Held that:- In Hello Minerals Water (P) Ltd. [2004 (7) TMI 98 - ALLAHABAD HIGH COURT] referred to in Precot Meridian Ltd [2015 (11) TMI 323 - SUPREME COURT], the facts were that certain final products of Chapter 39 of the Schedule to the Central Excise Tariff Act were fully exempted from Central Excise Duty under Notification No.15/94-C.E., dated 01/03/1994. The condition for exemption was that no MODVAT Credit should be availed on the inputs used in manufacturing of these final products. The assessee had availed the credit on the inputs but reversed subsequently. The issue was whether reversal of credit after availment can satisfy the condition of nonavailment of credit under the exemption notification. When these findings are tested on the anvil of the law laid down in Hello Minerals Water (P) Ltd. and Precot Meridian Ltd, we are of the considered opinon that the Tribunal is well within its jursidction in regularizing the deemed credit under Notification No.29/96-CE (N.T.), dated 03.09.1996 as amended by Notification No.28/98-CE (NT), dated 18.07.1998 as the benefit taken by the assessee under Rule 57H was paid back, i.e.: reversed. In the factual aspect of present case where there is no prohibition in the Notification No.29/96-CE (N.T.), dated 03.09.1996 as amended by Notification No.28/98-CE (NT), dated 18.07.1998 from reversing the Credit availed on the input to avail the benefit under said Notification No.29/96-CE (N.T.), dated 03.09.1996 as amended by Notification No.28/98-CE (NT), dated 18.07.1998 and the law laid down Hello Minerals Water (P) Ltd. and Precot Meridian Ltd, we are of the considered opinion that the appellants are not benefitted by the law laid down in Dilip Kumar and Company and others [2018 (7) TMI 1826 - SUPREME COURT OF INDIA], where it was held that When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the Revenue. Appeal dismissed - decided against Revenue.
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