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2023 (1) TMI 1044 - AT - Central ExciseReversal of CENVAT Credit - seeking permission to retake credit of wrongly reversed amount - case of Revenue is that the amount was correctly reversed under Rule 6 (3) of CCR as the option once exercised to reverse amount in terms of Rule 6 cannot be changed during the financial year - HELD THAT:- The fact is not under dispute that the appellant’s products namely, ‘Colour Positive Unexposed Cinematographic Film’ became exempted vide notification No. 33/2011-CE dated 25.06.2011. In case of goods became exempted for the purpose of cenvat, the procedure prescribed under Rule 11(3) need to be followed - From the provision of said section, it is clear that in case of any dutiable goods became exempted, the assessee is required to reverse the cenvat credit in respect of inputs lying in stock or in process or is contained in the final product as of date of opting for the exemption notification. In terms of above specific provision, the appellant is required to reverse the credit attributed to inputs as such, in process, contained in finished gods, therefore, the appellant have mistakenly reversed 5% in terms of Rule 6(3)(i) of Cenvat Credit Rules, 2004. As per the specific provision particularly in a case that the goods which were earlier dutiable and at interim stage became exempted, the provision which predominantly apply is Rule 11(3) of Cenvat Credit Rules, 2004. According to which the appellant is required to reverse the cenvat credit attributed to the input, in process and/ or contained in finished goods. The appellant have made good even though at a later stage by reversing the amount of Rs. 5,40,069/- therefore, the reversal of 5% made by the appellant is an excess reversal which need to be recredit/ refunded to the appellant. In the present case, the fact is different inasmuch as the dutiable goods became exempted for which Rule 11(3) is applicable, therefore, the Circular in the peculiar facts of the present case is not applicable. Moreover, in catena of decision, it was held that giving options for availing a particular option is procedural requirement and on failure of the same, the assessee cannot be deprived of choosing any of the option available in Rule 6(3) and one of the option is reversal of proportionate credit - the appellant’s excess reversal of Rs. 3,24,664/- required to be refunded/re-credit. The appellant is entitled for re-credit/ refund of Rs. 3,24,664/- and interest thereupon, if any, as per law - Appeal allowed.
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