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2016 (11) TMI 1334 - CESTAT CHANDIGARH

2016 (11) TMI 1334 - CESTAT CHANDIGARH - TMI - Exemption under Notification No. 6/2006-CE - competitive bidding - Rule 6(3)(b) of Cenvat Credit Rules, 2004 - Held that: - There is no dispute about the fact that in respect of supplied made by a manufacturer against international competitive bidding by availing full exemption under notification No. 6/2006-CE (Sl. No. 91) the provisions of sub rule (1), (2), (3) of Rule 6 are not applicable in view of the provisions of sub-rule (6) of Rule 6. When .....

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ner vide order dated 20.04.2009 had permitted the re-credit of ₹ 9,80,354/- this credit would be treated as available for the month 2009 and hence there would be no excess utilization of credit during that month. In view of this, the cenvat credit demand and penalty does not appear to be sustainable. - Appeal allowed - decided in favor of appellant. - E/594/2012 - Final Order No. 61278/2016 - Dated:- 31-8-2016 - Mr. Ashok Jindal, Member (Judicial) Present for the Appellant : Shri R. K .....

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ng separate account and inventory of inputs meant for dutiable and exempted final products, in accordance with the Provisions of Rule 6(3)(b) of Cenvat Credit Rules, 2004, they paid an amount equal to 10% of the sale value of the good under the mistaken belief that the provisions of Rule 6(1), (2) and (3) are applicable. The amount had been paid through cenvat credit and the amount paid was ₹ 9,80,354/-. Subsequently, when they realized that in view of the provisions of Rule 6(6) of Cenvat .....

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n reversed under Rule 6(3)(b) by mistake through cenvat credit, they would re-credit this amount. Accordingly, on 31.03.2009, the appellant took the re-credit of ₹ 9,80,354/-. Subsequently, the Jurisdictional Assistant Commissioner also vide order dated 20.04.2009 formally allowed the re-credit. However, taking into account suo moto credit of this amount on 31.03.2009, he imposed penalty of equal amount on the appellant. Besides this, he also confirmed the demand of ₹ 2,37,034/- alon .....

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3. Shri. R. Krishnanan, Advocate, the Id. Counsel for the appellant, pleaded that in term of the provisions of sub-rule (6) of Rule 6 of the Cenvat Credit Rules, 2004, in respect of the goods supplied against international competitive bidding by availing full duty exemption under Notification No. 6/2006-CE (Serial NO. 91), the provisions sub-rule (1), (2), (3) and (4) of Rule 6 ibid are not applicable; that the appellant wrongly reversed the cenvat credit amount of ₹ 9,84,354/- under Rule .....

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rmitting this re-credit, the imposition of penalty of equal amount for taking suo moto is without any justification; that similarly, when the re-credit has been allowed by the Assistant Commissioner, the allegation of excess utilization of cenvat to the tune of ₹ 2,37,034/- in the month of March 2009 would not be sustainable; that the appellant have a strong prima facie case and hence the requirement of pre-deposit of cenvat credit demand, interest and penalty may be waived and recovery th .....

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