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2020 (3) TMI 451 - AT - Central ExciseRefund of CENVAT Credit reversed - effect of amendment made vide notification no. 06/2015 dated 01/03/2015, prospective or retrospective effect? - Rule 6(4) of the Cenvat Credit Rules - HELD THAT:- The appellants were availing small scale exemption at the time when the capital goods were received in their factory in the year 2012-13. The appellant took registration in the year 2017. At the time of receipt of goods, there was no restriction on time for availing Cenvat credit on capital goods received in the factory. The said time limit was introduced by amendment by N/N. 06/2015 dated 01/03/2015 - The decision in the case of BHARAT RESINS LTD. VERSUS C.C.E. & S.T. – SURAT-I [2019 (9) TMI 701 - CESTAT AHMEDABAD] squarely covers this issue and held that the time limit introduced for availing Cenvat Credit on capital goods by the notification no. 06/2015 only has prospective effect and cannot be applied to the said amendment. In these circumstances, the appellant becomes eligible to avail the Cenvat credit on the capital goods without any restriction of the time limit imposed by notification no. 06/2015 dated 01/03/2015. Another point argued by the Revenue is that at the time when the Capital goods were received, the appellants were not entitled to avail the Cenvat Credit as the goods manufactured by them were fully exempt - HELD THAT:- It is seen that the appellants at the material time were claiming full exemption by virtue of notification and granted exemption on the basis of the value of clearances made during the Financial year - In the case of Nova Plasmold Pvt. Ltd. [2017 (7) TMI 1121 - CESTAT ALLAHABAD], it has been held that in view of Rule 6(4) of Cenvat Credit Rules, the restriction on availment of Cenvat Credit does not apply if the goods are exempted by virtue of notification which grants all exemption on the basis of the clearance made during any financial year - In these circumstances, the appellant becomes eligible for Cenvat Credit. However, it is seen that the appellants have voluntarily reversed the Cenvat Credit and now are seeking the refund. There is no provision for granting refund of any Cenvat credit voluntarily reversed by the appellant - Refund of any credit can only be granted when it is sanctioned by law and there are specific provisions for it. There is no provision for sanctioning of refund against reversal of credit in the present circumstances and thus, while the appellants may be entitled to Cenvat credit and may have wrongly reversed the Cenvat Credit, they cannot claim refund of the same. Appeal dismissed - decided against appellant.
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