TMI Blog2018 (5) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... of an amount equivalent to 6% of the value of the goods does not arise - appeal dismissed - decided against Revenue. - APPEAL NO: E/85235/2018 - A/86112/2018 - Dated:- 20-3-2018 - Shri M V Ravindran, Member (Judicial) Shri S. Hasija, Superintendent (AR) for appellant Shri Vinay Sejpal, Advocate for respondent This appeal has been filed by Revenue against Order-in-Appeal No: PUN-EXCUS-001-APP-564/17-18 dated 02/11/2017 passed by the Commissioner of Central Tax (Appeals 1), Pune. 2. Heard both the sides and perused the records. 3. The issue involved in this case is regarding confirmation of demand of an amount calculated @ 6% of the value of the exempted goods cleared using common inputs and input services. It was th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise, Mumbai -II 2015 (320) ELT 157 (Tri-Mumbai) and the bench has held that once the entire CENVAT credit on the common inputs services is reversed the question of confirmation of demand of an amount equivalent to 6% of the value of the goods does not arise. 6. I find that the first appellate authority in paragraph 10 and 11 has considered the provisions of Rule 6(2) and (3) of the CENVAT Credit Rules, 2004 in its entirety as also the judgment of the Tribunal in the case of Cranes and Structural Engineers and held that the option to avail or exercise the provisions of Rule 6(3) is a procedural one. Accordingly, respondent having reversed the entire CENVAT credit attributable to the common inputs and input services, the question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the clearance of the goods the said action amounts to non-availment of credit. The Hon'ble Apex Court in the case of Chandrapur Magnet Wires (P) Ltd (supra) also held that reversal of Modvat Credit at the time of clearance of the goods amounts to non-availing of credit. All the judgments relied upon by the appellant also confirm the above position. The Hon'ble High Court of Karnataka in the case of Himalaya Drug Company held that the provisions of Rule 6(3)(i) of the Credit Rule, 2004 would not be attracted if reversal of credit is done in respect of inputs used in the manufacture of exempted final products, In view of these decisions, we are of the considered view that the reversal of credit by the appellant on the entire servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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