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2020 (3) TMI 312 - HC - Central ExciseReversing of lapsed cenvat credit - Rule 11(3) of CCR, 2004 - Benefit of Notification dated 9 July 2004 availed and balance of CENVAT Credit reversed - Appellant put the Respondent to the notice in respect of their failure to reverse the CENVAT Credit of ₹ 2,86,83,157/- in terms of Rule 11(3). The contention of the Appellant is that Rule 11(3) of the Cenvat Credit Rules, 2004 envisaged lapsing of remaining CENVAT Credit and that being the position it could not have been utilized by the Respondent and their action of doing so has resulted on a tax liability which is rightly to be enforced through the show cause notice. HELD THAT:- The bare perusal of Sub Rule (3) of Rule 11 shows that stipulation of lapsing is included in Clause (ii) and not in Clause (i). These two clauses are separated by hyphen and use of the word ‘or’. Secondly in the Rule 11(3) (i) it is the option given to the manufacturer or producer for obtaining exemption. In category (ii) there is no such option but a reference is made for final product which has been exempted absolutely under Section 5A of the Act. Therefore, these two categories being distinct, the placement of stipulation cannot be considered as a mere draftsman error. The questions as proposed do not give rise to any substantial question of law - Appeal dismissed.
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