2023 (5) TMI 134 - AT - Central Excise

Reversal of credit and payment of interest - adjustment from the payment of Rs. 2 lacs already made by the appellant - adjustment Partial exemption under notification no. 5/2006-CE dated 01.03.2006 - ceramic roller on which the credit was availed is an input used in the manufacture of capital goods i.e. kiln - violation of condition no.7 of the notification No.5/2006-CE dated 01.03.2006 - HELD THAT:- The Tribunal/Court in HELLO MINERALS WATER (P) LTD. VERSUS UNION OF INDIA [2004 (7) TMI 98 - ALLAHABAD HIGH COURT] and COMMISSIONER OF CENTRAL EXCISE VERSUS ASHIMA DYECOT LTD. [2008 (9) TMI 87 - HIGH COURT GUJARAT] held that even if the assessee agreeing to reverse the cenvat credit availed at the stage of appeal before the tribunal, then also the condition of the notification which prescribes that no cenvat credit should be availed on the input will stand complied with accordingly, this case can be decided on the submission of the appellant that they are prepared for payment of cenvat credit along with interest and the same can be adjusted against the amount of cenvat credit and interest thereon. And if it is found that the amount of cenvat credit availed by the appellant along with interest is adjusted within the amount of Rs. 2 lacs paid by the appellant then the case can be decided on that basis.

The matter remanded to the adjudicating authority for passing afresh - appeal allowed by way of remand.