9911796707
TMI Blog2019 (5) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... decide the issue on merits even in the absence of any representation from the appellant. The appellant is manufacturer of craft papers and avails benefit of CENVAT credit. Being a Small Scale Industry, they also availed benefit of exemption notification available to Small Scale Units under notification 04/2006-CE dated 01.03.2006 as amended. Thus the appellant keeps moving into the tax net after crossing the exemption limit during the financial year and moving out of it at the beginning of the next financial year in order to claim the benefit of SSI exemption for the next year. This process of transition between exemption and duty payment renders them liable to transitional provision under Rule 11 of CENVAT Credit Rules, 2004. Sub-Rule (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6-CE dated 01.03.2006 the appellant had reversed an amount equivalent to the input credit in respect of inputs lying in stock or in process or contained in the final products lying in stocks on the date when such option is exercised. After such reversal an input CENVAT credit balance of Rs. 15,69,452/- and input service tax credit of Rs. 9,14,248/- was still lying in their CENVAT account. A show cause notice was issued to the appellant asking as to (a) why the input CENVAT credit of Rs. 15,6,452/- should not be recovered from them under Rule 14 of CCR, 2004 read with Sec.11A; (b) Why the input service tax credit of Rs. 9,14,248/- should not be recovered from them under Rule 14 of CCR, 2004 read with Sec.11A and why interest should not be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not required to pay any interest under Rule 14 and are not liable to penalties under Rule 15 of CCR, 2004. 6. Learned departmental representative reiterates the findings of the impugned order and prays that the appeal may be rejected. 7. We have considered the arguments on both sides and perused the records. The issue to be decided is whether the appellant availing the benefit of SSI exemption is required to reverse the amount of credit of input service lying in his account on that day under Rule 11(2) or otherwise. A plain reading of Rule 11(2) shows that the assessee who opts for benefit of SSI exemption is required to reverse the amount of credit of inputs lying in stock, lying in work-in-progress or used in the manufacture of final ..... X X X X Extracts X X X X X X X X Extracts X X X X
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