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2019 (7) TMI 1401 - AT - Central ExciseCENVAT Credit - common input services used in manufacturing as well as trading activity - non-maintenance of separate records - Rule 6(2) of CENVAT Credit Rules, 2004 - HELD THAT:- This issue is no more res integra and has been settled by various decisions of the Tribunal wherein it has been consistently held that the assessee has an option to reverse the credit as per the formula prescribed in Rule 6(3A) and if the assessee has not exercised the option prior to the availment of credit then the same can be exercised subsequently. In the case of M/S. ASTER PVT. LTD. VERSUS CC&CE, HYDERABAD [2016 (6) TMI 866 - CESTAT HYDERABAD] , this Tribunal again reiterated that Rule 6(3A) is only a procedural which cannot deny the substantive right. In the present case, the appellants are prepared to reverse the proportionate credit which according to them comes to only to ₹ 15,922/- along with interest. Penalty - no suppression of facts - HELD THAT:- There was no suppression of fact with intent to evade payment of duty. Further the non-reversal was due to bona fide belief founded by the appellant regarding the eligibility of the credit - the appellant is not liable to penalty. Appeal allowed in part.
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