2012 (10) TMI 693

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....ate of duty, after availing the benefit of Modvat credit of duty, paid on the inputs and capital goods. However, w.e.f. 1-4-2009, they opted for a Notification No. 4/2006 dated 1-3-2006 - Sl. No. 90. In terms of the said notification, the paper is exempted from payment of duty upto the limit of 3500 MT, if manufactured out of the specified raw materials. The appellant availed the benefit of the said notification till 15th June, 2009. Thereafter, as they crossed 3500 MT limit, they started paying normal rate of duty. There is no dispute about the above exemption notification and thereafter reverting to the normal rate of duty. 3. The dispute lies in respect of the Modvat credit, which was available by the appellant as on 1-4-2009. The ....

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....tion 5A of the Act, or (ii) the said final product has been exempted absolutely under Section 5A of the Act, and after deducting the said amount from the balance of CENVAT credit, if any, lying in his credit, the balance, if any, still remaining shall lapse and shall not be allowed to be utilized for payment of duty on any other final product whether cleared for home consumption or for export, or for payment of service tax on any output service, whether provided in India or exported." 6. The contention of the Ld. Advocate is that sub-rule (i) and (ii) are applicable in two different situations and the Commissioner's reliance on the above said provisions of sub-rule (ii) is not appropriate. 7. The adjudicating authority has....