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2010 (4) TMI 419 - CESTAT, BANGALORECenvat Credit- The respondents had Cenvat credit of Rs. 4,38,483/- in the Cenvat credit account as on 11-7-2006, the day on which they started availing full exemption on the final products manufactured by them under Notification No. 30/2004-C.E. dated 9-7-2004. The Assistant Commissioner appropriated this amount with interest of Rs. 27,330/- while sanctioning rebate of Rs. 5,60,363/- to the respondents on the ground that respondents are ineligible to take the Cenvat Credit after opting full exemption under Notification No. 30/2004-C.E. dated 9-7-2004. On an appeal filed by the respondents, Commissioner (Appeals) held that the adjustment ordered by the original Adjudicating Authority was wrong and he also held that credit on the inputs lying in stock at the time of opting for exemption need not be reversed. Held that- original Adjudicating Authority had adjusted the amount lying in the Cenvat credit account while sanctioning the refund without any issue of show cause notice. The provisions of Section 11 of Central Excise Act, 1944 empower the officers to adjust the amounts which are due to the Department. Therefore, it was necessary for the original Adjudicating Authority to hold that the Cenvat credit lying in the books of account was recoverable and only after an order upholding the recovery, the question of adjustment could arise. In view of the above discussions, there is no merit in the appeal filed by the Revenue and accordingly, reject the same.
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