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TMI Blog2018 (3) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... are engaged in the manufacture of excisable goods and were availing cenvat credit of duties paid on inputs under the Cenvat Credit Rules, 2004. The appellants vide their letter dated 30/31.3.2003 informed about opting out of the scheme w.e.f. 1.4.2007 and switched over to the exemption from duty, based on the value of clearances under Notfn. No.8/2003CE dated 01.03.2003 as amended. As per the requirement of Rule 11 (2) of the Cenvat Credit Rules, 2004, the appellants deposited an amount equivalent to the Cenvat Credit (including Cess) allowed to them in respect of inputs lying in stock or in process or contained in final products lying in stock on the date of switch over. 3. The appellant has filed the refund claim, which was denied to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturers the credit available on the date of paying the duty was not sufficient to cover the cenvat credit attributable to the inputs as well as inputs contained in the finished goods lying in stock. Consequently, the department was of the view that balance is required to be paid in cash. Such amount paid was claimed as refund by the manufacturers which stand denied by the department. 6. The case made out by the appellant is that there is no need to pay the balance if any, after deducting the balance available in the cenvat credit. Learned Counsel representing the appellants brought to our notice the decision of the Hon'ble High Court of Punjab & Haryana High Court in the case of Commissioner Vs. C N C Commercial Ltd. [2008 (224) ELT 239 (P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame, the Commissioner took the view that the said Rule would not come as a handicap in the way of the appellant in claiming the benefit of the said Notification inasmuch as it nowhere provides that the Modvat credit balance which was there with the appellant had to be debited before exercising the option to avail the exemption under the aforesaid Notification. After reproducing the Rule, the same is interpreted by the Commissioner in the following manner :- "4.6 .... sub-rule (2) of Rule 57AG of the Rules inter alia further provide that a manufacture who opts for exemption from the whole of the duty of Excise leviable on the goods manufactured by him under a notification bases on the value or quantity of clearances in financial year, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule or notification which had laid down for such denial." 8. After perusal of the above decisions, it is evident that Rule 11(2) as well as Rule 11(3) do not deal with a situation in which the balance in the cenvat credit is not adequate to cover the duty attributable to the inputs as well as finished products in stock on the date of opting out of cenvat credit scheme. 9. By following the decision of Hon'ble Punjab and Haryana High Court as well as Hon'ble Apex Court, we come to the conclusion that there is no requirement for the appellants to pay the balance amount in cash. Consequently, they will be entitled to the refund of such amount, if already paid. 10. In the result, appellants succeed in their appeal. Impugned orders ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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