Reversal of attributable CENVAT credit can satisfy non-availment conditions for exemption under Notification No. 30/2004-CE.

Reversal of CENVAT credit attributable to inputs used in exempted clearances was treated as satisfying the condition in Notification No. 30/2004-CE that such credit not be availed. The Tribunal accepted that subsequent reversal amounts to compliance with the non-availment requirement, relying on prior decisions and the deeming approach under Rule 6 of the CENVAT Credit Rules, 2004. It rejected the Revenue's contrary argument based on a different factual setting and confirmed that the exemption remained available where the attributable credit had been reversed.

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Issues: Whether the assessee was entitled to the benefit of Notification No. 30/2004-CE when CENVAT credit attributable to the relevant inputs had been reversed subsequently.

Analysis: Notification No. 30/2004-CE conditions exemption on non-availment of CENVAT credit on inputs. The Tribunal held that where the credit attributable to the exempted clearances is reversed, the requirement of non-availment stands satisfied. It relied on prior Tribunal decisions accepting reversal of credit as sufficient compliance, and also noted the statutory deeming approach under Rule 6 of the CENVAT Credit Rules, 2004 in support of treating such reversal as equivalent to credit not taken. The Revenue's contrary view was rejected, including its reliance on a different factual situation.

Conclusion: Reversal of the attributable CENVAT credit made the assessee eligible for the exemption under Notification No. 30/2004-CE; the Revenue's appeal was not sustainable.

Ratio Decidendi: Subsequent reversal of CENVAT credit attributable to inputs used in exempted clearances can satisfy a notification condition requiring that such credit not be availed.

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