2007 (5) TMI 46

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....uty on the final products. (b) On 22-2-2004, they opted for and started availing the benefit of Notification No. 30/04, dt. 9-7-2004 according to which the goods are fully exempted subject to the condition, - "Provided that nothing contained in this notification shall apply to the goods in respect of which credit of duty on inputs or capital goods has been taken under the provisions of the CENVAT Credit Rules, 2002." (c) The appellant took some time for taking inventory of inputs lying as such, inputs contained in the goods under process and the inputs which have gone into goods ready for dispatch as on 22-7-2004 and they paid a sum of Rs. 85,83,545/- in cash by TR-6 challans and the rest of the amount about Rs 11 lakhs was paid by rever....

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....r the provisions of these rules." 4.3 He also relied on the order of the Larger Bench of the Tribunal in the case of Commissioner of Central Excise, Rajkot v. Ashok Iron & Steel Fabricators reported in 2002 (140) E.L.T. 277, wherein it has been held that credit which has been taken validly need not be reversed when subsequently the products are ex empted. 5. The id. DR apart from reiterating the reasonings of the Commissioner (Appeals), draws my attention that there was delay in reversing the credit and in paying the duty involved on excess credit availed by them prior to 2 1-7- 2004 as they were required to reverse as on 21-7-2004 and therefore interest has been rightly demanded. 6.1 I have carefully considered the submissions from both....