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2016 (9) TMI 1095 - AT - Central ExciseCenvat Credit - impact of subsequent decision of apex court - Rule 14 of Cenvat Credit Rules, 2004 read with proviso to Sub-section (1) of Section 11A of Central Excise Act, 1944 - procurement of plastic laminated packing pouches as their inputs for packing their finished goods - Hon’ble Supreme Court ordered that plastic laminated packing pouches should not be used for packing of Chewing Tobacco on 11th May, 2011 and cenvat credit availed was for the period from March, 2009 to March, 2011 - Held that:- it is found that the date on which Cenvat credit was taken by the appellant the inputs on which the Cenvat credit was taken were regularly in use for packing the finished product and therefore the Cenvat credit availed was eligible. I also find that Cenvat credit which is validly taken needs to be reversed only when the inputs are cleared as such. I, further, note that Rule 14 of Cenvat Credit Rules, 2004 provided for recovery of irregularly availed Cenvat credit and it is beyond the scope of said Rule 14 of Cenvat Credit Rules to recover the Cenvat credit which was validly taken. I, therefore, hold that the Show Cause Notice is misconceived and therefore, I set aside the Show Cause Notice, Order-in-Original and Order-in-Appeal. - Decided in favour of appellant
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