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2021 (11) TMI 15 - AT - Central ExciseReversal of proportionate CENVAT Credit - requirement to pay 5%/10% of the value of exempted goods in terms of Rule 6(3) of Cenvat Credit Rules, 2004 - period post 01.04.2008 - applicability of retrospective amendment in Rule 6 - rule effective only up to 31.03.08 or not - HELD THAT:- There is no dispute in the fact that the appellant even though belatedly, but admittedly reversed the Cenvat credit in respect of input/input service attributed to exempted goods along with interest. Even though, the appellant initially availed the Cenvat Credit but subsequently reversed the proportionate credit along with interest, the situation is as if the Cenvat credit was not availed right from the taking credit, therefore, the demand of 5%/10% under Rule 6(3) of Cenvat Credit Rules, 2004 is not sustainable. The issue decided in the case of M/S BOMBAY MINERALS LTD. VERSUS C.C.E. & S.T. RAJKOT (VICE-VERSA) [2019 (1) TMI 175 - CESTAT AHMEDABAD] where it was held that In the present case since the Ld. Commissioner has demanded 5% / 10% of the value of exempted goods, he has not verified the correctness of actual cenvat credit attributed to exempted goods as reversed by the assesse. It can be seen that on the identical facts that once the assessee reversed the proportionate credit along with interest in the case of any delay, the demand of 5%/10% under Rule 6(3) is not sustainable - Appeal allowed - decided in favor of appellant.
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