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2016 (12) TMI 213 - AT - Central ExciseReversal of input tax credit - common input service - the respondent has not reversed the credit availed on common input service used in the manufacture of final exempted products before their clearance, therefore, the respondent is required to pay 10% of the value of final exempted products - Held that: - reliance placed on the decision of the case of Dr. Writer's Food Products Pvt.Ltd.[2009 (3) TMI 846 - CESTAT, MUMBAI], where similar issue was decided, and it was held that payment of duty on yarn on deferred basis took place before clearance of grey fabrics on which exemption was claimed. Therefore, payment was made before the stage of exemption. Similarly, on payment of duty on the input (yarn) the assessee got the credit which was never utilized. That before utilization, the entry has been reversed which amounts to not taking credit. Hence, in this case, both the conditions are satisfied. Hence, item no. 1 of the table to Notification No. 14/2002-C.E would apply and accordingly the grey fabrics would attract nil rate of duty. Respondent not required to pay an amount equal to 10% - appeal dismissed - decided against Revenue.
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