TMI Blog2016 (6) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts paid which was rejected by the Original Authority. Held that:- for availing the Compounded Levy Scheme, no credit of duty paid on raw materials, components parts etc. is allowed to be taken. However, the Revenue expanded the scope by interpreting that the credit of duty on the inputs, contained in work in progress and the finished products lying in the stock on the date of opting for the notification needs to be reversed as condition precedent to avail the benefit of the notification. - the credit of duty taken and utilized in respect of not only inputs in stock, but also contained in finished products as on the date of introducing, the Compounded Levy Scheme is not recoverable. - Refund allowed - Decided in favor of assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was rejected by the Original Authority vide his order dated 16/11/2006 which was confirmed in appeal by the Commissioner (Appeals), vide his order dated 19/2/2007. The appellant is in appeal before us against the rejection of refund mainly on the ground that Proviso to Para 1 of the Notification No. 34/2001 imposes the condition that no credit of duty paid on raw materials, component parts, machinery or finished goods shall be taken. This cannot be interpreted by the Revenue to require reversal of the CENVAT Credit on inputs, which are lying in stock, contained in work in progress or in finished products in stock. The issue has already been settled in their favour by this Tribunal through many decisions delivered in the context of Compou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or as already held by the Tribunal in the decisions cited by the appellant. 8. This Tribunal had occasion to examine the similar issue in the case of CCE Vs. Bhushan Industries Ltd. 2003 (162) ELT 356 (Trib.) with reference to inputs lying in stock at the time of opting for Compounded Levy Scheme and it has been held as follows: The contention of the Revenue is that as respondents opted for Compounded Levy Scheme, therefore, the credit of the inputs lying in their stock was to lapse. The contention of the respondents is that credit of ₹ 19,790/- was lying in t heir Modvat account on the day, they opted for the Compounded Levy Scheme. The remaining amount of credit was already utilized towards payment of duty, therefore, that a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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