TaxTMI 
TaxTMI 
2017 (10) TMI 956
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....the products manufactured by them during the year 2007-08 to 2011-12. They were also availing Cenvat Credit on inputs and input services after exhausting the exemption limited prevailing corresponding financial year. In terms of Rule 11(2) of Cenvat Credit Rules 2004, the manufacturer who opts for exemption from whole of the duty of excise leviable on goods manufactured by him under a notification based on the value or quantity of clearance in a financial year, and who has been taking Cenvat Credit on input and input services, before such option is exercised, shall be required to pay an amount equal to Cenvat Credit, if any, allowed to him in respect of inputs lying in stock or in process or contained in final products lying in stock on the....
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....eversal entry in the Cenvat Credit. As the assesee has not availed the Cenvat Credit lying in their Cenvat Credit account, therefore, the proceedings were dropped against the assessee. Aggrieved from the said order, revenue preferred appeal before the Ld. Commissioner (A). The Ld. Commissioner (A) held that the appellant is required to reverse the said amount and the same is recoverable from the assessee along with interest and did not impose any penalty on the assessee. Aggrieved from the order of non imposition of penalty, the revenue is in appeal and against the order of demanding Cenvat Credit from the assessee along with interest, the assessee is in appeal. 4. Heard both the sides and examined the issue. 5. In the adjudication or....
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....tilized the same in the next financial year making it as good as reversing the credit. In order to verify this claim of the notice, a detailed report was obtained from the concerned range who had submitted their report vide letter no. CEX/R-KNW/18/2012-13/1049 dated 20.03.2014. 22. In the verification report, the superintendent had mentioned that the notice had a credit balance which was sufficient to cover the input credit attributable to inputs / work in progress lying in stock at the end of the financial year but the notice failed to make the reversal entry in the books. It is also certified that the said unutilized credit lying in balance has not been utilized by them in the next financial year. 23. From the above, it is clear tha....
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....opting exemption has been availed by the assessee in the subsequent period or not. To that effect, the report filed by the superintendent clearly states that the said Cenvat Credit was not availed by the assessee but no debit entry has been made in the RG-23 A Part 2 and Part C of that. It was observed by the adjudicating authority that as the said amount has not been utilized merely reverse entry has not been made is equivalent to non reversal of the Cenvat Credit. Therefore, the adjudicating authority has dropped the demand. Admittedly, the report of the range superintendent has not been disputed by the revenue while filing the appeal before the Ld. Commissioner (A), therefore, the Ld. Commissioner (A) fell in error to hold that the amoun....