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2015 (12) TMI 732 - CESTAT BANGALORE

2015 (12) TMI 732 - CESTAT BANGALORE - TMI - Reversal of SAD credit on removal of inputs as such - Whether in such a scenario, the law requires separate reversal of SAD or not - Held that:- Provision of law simplicitor requires an assessee to reverse the CENVAT credit so availed by him in case the receipted inputs are subsequently removed. In the present case admittedly the appellant has paid excise duty by adopting transaction value of the said inputs by debiting the CENVAT credit. The said fac .....

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e cumulative credit in respect of all the duties is to the extent of ₹ 100 and if an asseessee has paid ₹ 120/- at the time of clearance of such inputs, it can be safely concluded that the entire credit stands reversed by him. There cannot be any further requirement of reversal of SAD component separately. - Impugned order is set aside - Decided in favour of assessee. - E/21155/2014-SM - Dated:- 28-10-2015 - Smt. Archana Wadhwa, Judicial Member For the Petitioner : Shri B. Raghavendr .....

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cation cess, SHE cess as also on payment of SAD. The duties so paid by the appellant were availed as credit. 2. Though appellants are using the said inputs in the manufacture of their final product but in case of surplus inputs, the same are removed as such by selling the same. At the time of removal of the said inputs, the appellant paid the duty of excise on the transaction value of the said inputs, by debiting the same out of the CENVAT credit so availed. 3. As per the audit conducted in th .....

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ication, the appellant contested the demand on merits as also on limitation. It was specifically pleaded by them that while paying duty of excise on the inputs sold by them, they have reversed much more than the total credit so availed by them. As such, there was no need to separately reverse the SAD credit. As regards limitation, they pleaded that the entire facts were in the knowledge of the Revenue and were part of their records, in which case, no mala fide can be attributed to them so as to .....

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nt appeal. 6. I have considered the submissions made by both the sides. It is not disputed that the inputs were imported by the appellant on payment of duties for further use in the manufacture of their final product. The duties so paid by the appellant were availed as credit in their statutory records. However in some cases, the inputs being surplus were sold by the appellant on a transaction value and on payment of duty of excise. Such excise duty so paid by the appellant was debited from thei .....

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the factory, the manufacturer of the final product shall pay an amount equal to the credit availed in respect of such inputs. As such, the said provision of law simplicitor requires an assessee to reverse the CENVAT credit so availed by him in case the receipted inputs are subsequently removed. In the present case admittedly the appellant has paid excise duty by adopting transaction value of the said inputs by debiting the CENVAT credit. The said fact is not in dispute and stands mentioned in th .....

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ontended that they need not to reverse the SAD component as they have already paid an amount more than what they have availed as CENVAT Credit, therefore no requirement in the CENVAT Credit Rules, 2004 to reverse the credit availed on SAD. 20. These contentions of the assessee cannot be accepted. Mere paying more amounts by adopting the transaction value does not suffice the compliance to the provision of law. As per Rule 3(5) of CENVAT Credit Rules, 2004 the assessee has to reverse the amount e .....

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