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2022 (12) TMI 134 - AT - Central ExciseCENVAT Credit - dutiable as well as exempted goods by using cenvated inputs - reversal of 6% of the value of exempted goods in terms of Rule 6(3) of Cenvat Credit Rules, 2004 - Whether after such compliance, there is any contravention of condition of Notification No. 30/2004-CE dated 09.07.2004 which in order to avail it, stipulates that assessee should not avail Cenvat credit? HELD THAT:- From the above sub-rule (3D) of Rule 6, it is clear that even though assessee availed Cenvat credit but in compliance of Rule 6(3), they reversed the credit which will amount to non-availment of credit. With this statutory provision once the appellant complied with the provision of Rule 6(3) by reversing the credit, the condition of the notification automatically stand met. Therefore, it cannot be said that the appellant have violated the condition of notification. Since the penalty is consequential to demand in the present case and the said demand is not sustainable, the penalty on the appellant is also not sustainable. Hence there is no merit in the Revenue’s appeal. Appeal allowed - decided in favor of appellant.
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