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2024 (5) TMI 849 - CESTAT AHMEDABADReversal of accumulated Cenvat credit under Rule 11 (3) of Cenvat Credit Rules, 2004 - lapse of accumulated unutilized Cenvat credit balance by availing N/N. 30/2004-CE in terms of Rule 11 (3) of Cenvat Credit Rules, 2004 - manufacture of excisable goods texturized polyester yarn falling under 5402 of the first schedule of tariff act, 1985 and is availing Cenvat credit under Cenvat Credit Rules, 2004 - HELD THAT:- From the Rule 11 (3) (ii) it can be seen that the provision of lapsing of credit is applicable only in the case where the assessee avails the absolute exemption notification. In the present case, the respondent has admittedly availed the exemption Notification No. 30/2004- CE - the Notification No. 30/2004-CE is not absolute notification but is it is a conditional one. Therefore, the provision of lapsing of the accumulated unutilized credit as provided under Rule 11 (3) (ii) of Cenvat Credit Rules, 2004 is not applicable in the facts of the present case. This issue has been considered time and again in various judgments. This Tribunal in the case of Welspun India Ltd [2023 (8) TMI 177 - CESTAT AHMEDABAD] where it was held that 'the appellant is neither liable to reverse the accumulated Cenvat credit of ADE (T&TA) nor the demand of the same is sustainable.' Thus, it was held that the assessee is not required to reverse the accumulated Cenvat credit under Rule 11 (3) of Cenvat Credit Rules, 2004 when the conditional notification is availed. The order passed by the Learned Commissioner (Appeals) is legal and correct and does not require any interference there in - the impugned order is upheld - Revenue’s appeal is dismissed.
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