2016 (6) TMI 869

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.... the Compounded Levy Scheme in terms of notification No. 34/2001-CE dated 28/06/2001. This notification in Para 1 (proviso) imposed the following condition: "Provided that no credit of duty paid on any raw materials component part Or machinery or finished products used for cold rolling of stainless steel Pattis/Pattas, or aluminum circles under Cenvat Credit Rules, 2004 shall be taken". 2. At the time of opting for the benefit of this notification, there was stock of inputs, work in progress, components inputs, as well as finished goods, containing inputs on which CENVAT Credit was availed. The appellant paid the amount of Rs. 733739/- (CENVAT duty) and Rs. 14675/- (Education Cess) towards reversal of the CENVAT Credit taken on the inputs....

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.... 28/6/2001. This proviso is reproduced below: "Provided that no credit of any duty paid on any raw materials component part Or machinery or finished products used for cold rolling of stainless steel Pattis/Pattas, or aluminum circles under Cenvat Credit Rules, 2004 shall be taken". 7. The plain reading of the above proviso leads us to the interpretation that for availing the Compounded Levy Scheme, no credit of duty paid on raw materials, components parts etc. is allowed to be taken. However, the Revenue expanded the scope by interpreting that the credit of duty on the inputs, contained in work in progress and the finished products lying in the stock on the date of opting for the notification needs to be reversed as condition precedent ....