Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2018 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 1029 - HC - Central ExciseReversal of CENVAT credit - Rule 11(2) of Cenvat Credit Rules, 2004 - Assessee availed SSI exemption under N/N. 8/2003-C.E., dated 01.03.2003 - case of Revenue is that though the assessee had availed the SSI exemption, it had failed to pay the amount of duty under Rule 11(2) of CCR, 2004, equivalent to Cenvat credit availed by them on inputs and finished goods lying in stock as on 31.03.2005 and 31.03.2006 - whether the demand of duty equivalent to the Cenvat credit availed by the assessee on the finished goods and inputs lying on stock as on 31.03.2006 was correct, as they have admittedly availed the SSI exemption Notification No.8 of 2003 dated 01.03.2003? Held that: - it is an admitted fact that from the inception, the assessee had been availing the SSI Unit exemption. The said exemption under N/N. 8 of 2003,-C.E., dated 01.03.2003 had been given based on the quantum, and once the Unit exceeds the quantum, it will automatically lose the exemption facility and again, if it comes back within the quantum, it can start seeking exemption - admittedly, in February and March 2006, the assessee was not in the zone of SSI exemption and therefore, it started to pay the excise duty. For the SSI Unit claiming exemption, if at all any Cenvat credit claimed, the same is reversable during the exemption period. The fact remains that as per the stock available based on the Stock Register and other documents, which were verified by the revenue that, on closing of stock of 400.85 MTS contains 72.46MTS of import scraps on which Cenvat credit was availed and therefore, from 01.04.2006, since the assessee has become once again eligible to get exemption under SSI exemption notification, naturally, the assessee has to be subjected to Cenvat credit reversal, as the stock lying as on 31.03.2006 unutilized, certainly, would go for manufacturing or utilisation beyond the date. The Cenvat credit availed by the assessee, even during the period from February to March 2006, insofar as the lying stock as on 31.03.2006 is concerned, shall be certainly reversable - the demand made by the revenue for duty to be payable is wholly justifiable in consonance with the relevant provisions of the Cenvat Credit Rule as well as the Central Excise Act. Appeal dismissed - decided against assessee.
|