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2022 (4) TMI 475 - AT - Central ExciseCENVAT Credit - common inputs and input services used in the manufacture of dutiable and exempted goods - non-maintenance of separate records - case of the department is that since the appellant have not filed a declaration for opting of proportionate reversal of credit, they are required to pay 5%/10% of the value of the exempted goods, demand was confirmed - HELD THAT:- The Learned Commissioner (Appeals) held that the appellant is required to pay 5%/10% on the ground that they have not filed a declaration as required for payment of proportionate credit in terms of Rule 6(3)(A) of Cenvat Credit Rules, 2004. It is not in dispute that the appellant have admittedly reversed the proportionate credit and in respect of delay, they have also paid interest. Therefore, in my view as held by the Hon’ble Supreme Court in the case of CHANDRAPUR MAGNET WIRES (P) LTD. VERSUS COLLECTOR OF C. EXCISE, NAGPUR [1995 (12) TMI 72 - SUPREME COURT], reversal of Cenvat Credit along with interest shall amount to non-availment of Cenvat Credit, if this be so, then Rule 6 is not applicable. The appellant has rightly reversed the proportionate credit along with payment of interest. Hence, no further payment can be demanded from the appellant - Appeal allowed - decided in favor of appellant.
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