TMI Blog2016 (11) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... ersing the proportionate credit by the appellant. The liability of interest for the delayed reversal of credit is confirmed against the appellant. Except for this, we find that there is no legal justification to demand 5% on the value of exempted clearances in the present case - reversal of CENVAT credit not sustainable - appeal is allowed - the appellant liability to interest on delayed reversal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Zawar mines without payment of duty. In such situation, the applicability of Rule 6 of Cenvat Credit Rules came into play. The appellants were reversing cenvat credit on inputs relatable to such ore cleared without payment of duty. However, in respect of input services they have done such reversal of credit input services relatable the exempted ore cleared only at the end of the financial year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y have clearly followed the procedure set out in Rule 6 of Cenvat Credit Rules, 2004 in respect of inputs attributable to the exempted ore cleared by them. They have reversed the credit on monthly basis. However, regarding input services they have reversed the same only in the month of March, 2011. They have admitted the delay in reversal. However, this by itself will not attract the payment of 5% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not entitled to the said concession of reversal of proportionate credit. Accordingly, the demand of 5% of value of exempted goods was confirmed. We find that similar matter came for decision before the Tribunal in Tata Technologies Limited vs. CCE, Pune-I - 2016 (42) STR 290 (Tri.- Mumbai. The Tribunal observed as follow: 6.2 Thus, it is evident that the condition of filing the declarati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 6 has been recorded. However, we note that there is a delay in reversing the proportionate credit by the appellant. The liability of interest for the delayed reversal of credit is confirmed against the appellant. Except for this, we find that there is no legal justification to demand 5% on the value of exempted clearances in the present case. In view of the above discussion, we find the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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