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2014 (1) TMI 114 - CESTAT NEW DELHIReversal of cenvat credit – No separate accounts maintained – Held that:- As per the Board’s circular, the manufacturer may take credit or duty paid on all the inputs used in the manufacture of final products on which duty will have to be paid - This can be done only if the credit of duty paid on the inputs used in the exempted products is debited in the credit account before the removal of the exempted final products - Apart from the fact that there are various decision of the Tribunal laying down that wherever the Cenvat Credit stand reversed by the assessee, the provisions of Rule 6 (3)(b) of Cenvat Credit Rule, 2002 would not apply - the law now stands amended retrospectively laying down that if an assessee reverses the Modvat Credit in respect of inputs used in the manufacture of final exempted product, there is no need for payment of 10% of amount of value of the exempted products – Assessee has admittedly reversed the credit – Decided against Revenue.
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