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2018 (7) TMI 319 - AT - Central ExciseReversal of CENVAT Credit - clearance of inputs as such - input services - Held that:- As per Rules 6(1) and 6(2) of the Rules, credit will not be permissible on inputs or input services used for the manufacture of exempted goods or provision of exempted services - the clearance of inputs as such as mentioned in Rule 3(5) of the Cenvat Credit Rules, 2004 is to be treated as clearance of the goods from factory on payment of duty and the question of reversal of the credit taken on various inputs services cannot arise. The credit of ₹ 26,468/- was availed towards repairing services, insurance, maintenance and repair of vehicles, and Rent A Cab Service had been reversed and the Ld. Adjudicating Authority had dropped the proceedings for recovery of this cenvat credit amounting to ₹ 26,468/- but has imposed penalty of equal amount under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 78 of the Finance Act, 1994 - The CBEC instructions No.96/85/2015-CX.I dated 07.12.2015, in paragraph B.26, it has been observed that there is no provision in the present Rule 3(5) and accordingly there is no such necessity of amending Rule 3(5) for incorporating reversal of credit taken on inputs services. The appellant is not required to reverse the credit on input services that was taken along with duty paid on such inputs - appeal allowed - decided in favor of appellant.
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