2014 (10) TMI 54

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....he CENVAT Credit Rules 2002/2004, along with interest, and equivalent penalty has also been imposed under CENVAT Credit Rules 2002/2004. 2. Shri Anand Nainawati (Advocate) appearing on behalf of the appellant argued that appellant procured certain inputs from DTA units against invalidation of Advance Licence for further manufacture of final products for export as per Para 4.25 of the relevant EXIM Policy. That on receipt of the inputs appellant took CENVAT Credit which according to the Revenue is not admissible once benefit of Notification No.44/2001-CE(NT), dt.26.06.2001, issued under Rule 19(2) of Central Excise Rules, is applicable. That show cause notice dt.17.05.2007 was confirmed by the adjudicating authority which was upheld under O....

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....allowing the appeal, following has been observed:- 5. We have considered the submission of the both the sides. There is no dispute that appellants had taken invalidation letter/ARO. These documents were handed over to the suppliers who in turn would have taken the benefit available to them. These have not been cancelled or withdrawn by the appellants. However, it is also observed from the impugned orders itself that the suppliers have not availed the refund of terminal excise duty. We also find from the documents submitted along with the appeal papers that the suppliers have in the relevant years paid very substantial duty from PLA and, therefore, the Revenue's contention regarding shifting of credit does not hold water. We have asked the ....