TMI Blog2018 (12) TMI 1422X X X X Extracts X X X X X X X X Extracts X X X X ..... r payment of duty on export goods against claim of rebate of duty under Rule 18 of the Central Excise Rules, 2002, is in accordance with law, until the introduction of Rule 11(3) of Cenvat Credit Rules on 01.03.2007 - It may be noted that the sanction and payment of the alleged rebate claims pertain to payment of duty by availing cenvat credit during the period 10.06.2007 to 31.07.2007. When the amendment was made on 01.07.2017, the petitioner was already availing exemption. It is to be noted that the provision apply only in transitional situation when the assessee opts to stop payment of duty and avail exemption. The question of reversal does not arise. In effect, the amendment to Cenvat Credit Rules, 2004 by the insertion of Rule 11 (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rders in review passed by the Board under Section 35 EE of the Central Excise Act, 1944. The Orders in review had set aside the Orders in Appeal of the first appellate authority and reinstated the Orders in Original passed by the Original authority. 4.The issue pertains to the demand of the alleged erroneous refund of rebate of taxes on the duty paid export goods in terms of Rule 18 of the Central Excise Rules, 2004. The rebates alleged as erroneous sanction and payment pertain to exports made during the period from 10.06.2006 to 31.07.2007. The petitioner candidly admits that the duty on the said export goods were paid from out of the Cenvat credit earned by the petitioner before 09.07.2004, the date of issue of the exemption Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat Credit Rules, 2004 requiring reversal of credit on lying stock and lapse of credit was introduced on that date. 7.The provision for reversal of credit on the lying stock of inputs and inputs in finished goods and the lapse of excess credit available in the books of accounts on opting to avail exemption under notification issued under Section 5 A was introduced by inserting sub rule 3 of Rule 11 of Cenvat Credit Rules, 2004 vide Notification No.10/2007 CE (NT) dated 01.03.2007. Prior to that amendment, there was no provision requiring the petitioner to reverse the cenvat credit or purge the lapsed credit under the Cenvat Credit Rules, 2004 when opting to avail exemption under a notification issued under Section 5 A. It may be noted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e introduction of Rule 11(3) of Cenvat Credit Rules on 01.03.2007. It may be noted that the sanction and payment of the alleged rebate claims pertain to payment of duty by availing cenvat credit during the period 10.06.2007 to 31.07.2007. When the amendment was made on 01.07.2017, the petitioner was already availing exemption. It is to be noted that the provision apply only in transitional situation when the assessee opts to stop payment of duty and avail exemption. Therefore, the question of reversal does not arise. In effect, the amendment to Cenvat Credit Rules, 2004 by the insertion of Rule 11 (3) will operate only on tax paying assessees who opt to avail exemption on or after 01.07.2007. 10.In view of the above discussions, the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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