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2019 (12) TMI 550 - AT - Central ExciseCENVAT Credit - allegation that the appellant has not paid service tax correctly and also did not reverse an amount of 6% of the value of exempted goods cleared - invoices issued beyond one year - HELD THAT:- The appellant has reversed the said credit before issuance of show-cause notice with penalty of 15%. Therefore there is no justification for imposing penalty and more over, the appellant had sufficient CENVAT credit in their account during the relevant period. Similarly the CENVAT credit on GTA was reversed by the appellant along with interest and also 15% penalty which is sufficient and therefore no penalty is required on this CENVAT credit which was reversed. Demand of reversal of 6% on containers used for packing inputs on which credit has been availed - HELD THAT:- Even if the amendment in Rule 6(1) w.e.f. 01/03/2015 wherein Explanation has been added to Rule 6(1), it is clear that Rule 6(1) would apply only when inputs or input services are used in relation to the manufacture of exempted goods - Further, it is an admitted fact that MS drums have not been manufactured by the appellant and therefore Rule 6(1) is not applicable even after the insertion of Explanation w.e.f. 01/03/2015. Appeal allowed - decided in favor of appellant.
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