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2023 (4) TMI 916 - AT - Central ExciseCarry forward of unutilized cenvat credit - lapsed credit or not - CENVAT credit reversed in the stock of materials/inputs contained in their finished goods WIP - Clearance of goods under exemption from whole of the duty of excise in terms of Notification no. 30/2004-CE - denial of carrying forward of balance credit on the ground that the same shall stand lapsed as the appellant have opted for full exemption under notification no. 30/2004-CE - HELD THAT:- From the careful reading of the Rule 11(3), it makes clear that in case if assessee opts for the exemption from whole of the duty of excise leviable on the said final product under a notification issued under Section 5(A) of the Act and the said final product has been exempted absolutely under Section 5A of the Act, after deducting the cenvat credit in respect of inputs lying in stock or in process or contained in the final product, the remaining amount shall lapse. The said rule provides that in any case, the cenvat credit on stock of input lying in stock, in process and contained in finished goods needs to be reversed however, as regard the balance cenvat credit after such reversal shall lapse only in a case where the exemption notification is absolute. In the present case, notification no. 30/2004-CE is not a absolute notification - Since the above condition in such case in terms of clause (ii) of Rule 11(3) of Cenvat Credit Rules, 2004, the provision of lapsing of balance cenvat credit was not applicable in the present case. The issue is no longer res-integra accordingly, the impugned order being not sustainable in law - Appeal allowed.
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