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2016 (6) TMI 869 - CESTAT NEW DELHI

2016 (6) TMI 869 - CESTAT NEW DELHI - TMI - Claim of refund of amount of cenvat credit reversed - W.e.f. 1/5/2006 appellant opted for payment of duty as per the Compounded Levy Scheme in terms of notification No. 34/2001-CE dated 28/06/2001 - At the time of opting for the benefit of this notification, there was stock of inputs, work in progress, components inputs, as well as finished goods, containing inputs on which CENVAT Credit was availed. The appellant paid the amount of ₹ 733739/- (C .....

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uts, 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. - Appeal No. E/1030/2007-EX[DB] - Final Orde .....

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1/5/2006 , they opted for payment of duty as per the Compounded Levy Scheme in terms of notification No. 34/2001-CE dated 28/06/2001. This notification in Para 1 (proviso) imposed the following condition: Provided that no credit of duty paid on any raw materials component part Or machinery or finished products used for cold rolling of stainless steel Pattis/Pattas, or aluminum circles under Cenvat Credit Rules, 2004 shall be taken . 2. At the time of opting for the benefit of this notification, .....

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as 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 .....

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. Tulsyan NCE Ltd.Vs. CCE 2008 (224) ELT 423 (Trib.) 4. Kakda Rolling Mills Vs. CC 2005 (179) ELT 457 (Trib.) 5. Ld. DR on the other hand reiterated the order of the Authorities below. 6. The dispute centers around the interpretation of the Proviso to Para 1 in Notification No. 34/2001 dated 28/6/2001. This proviso is reproduced below: Provided that no credit of any duty paid on any raw materials component part Or machinery or finished products used for cold rolling of stainless steel Pattis/Pat .....

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o be reversed as condition precedent to avail the benefit of the notification. In our view such an interpretation is uncalled for 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 r .....

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