2018 (7) TMI 772

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....eir CENVAT Credit records, in the subsequent Financial Year 2010-11, as their opening Balance. Also, they have availed credit of Rs. 5,74,902/- during the Financial Year 2010-11, even though they were availing benefit of SSI exemption under Notification 08/2003-CE dated 01/03/2003. Alleging the aforesaid credit amount is inadmissible, SCN was issued for recovery of the same and on adjudication, it was confirmed with interest and penalty. Aggrieved by the said order, they filed appeal before Ld. Commissioner (Appeals), who inturn rejected the Appeal, hence, the present Appeal. 3. Ld. Chartered Accountant for the appellant submits that they had availed SSI Exemption under Notification 8/2003-CE dated 01/03/2003 on the aggregate value of cl....

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....erated the findings of the Ld. Commissioner (Appeals). 5. I find that the short issue involved in the present appeal is: whether the appellant had correctly availed CENVAT Credit of Rs. 5,30,300/- lying in balance as on 31/03/2010 and also credit of Rs. 5,74,902/- availed during the Financial Year 2010-11. It is not in dispute that the appellant manufacture excisable goods and avail benefit of SSI exemption under Notification 08/2003CE dt.31.3.2003 for the first aggregate clearance of Rs. 150.00lakhs . Also, they have manufactured excisable goods affixing the brand name of others for which the said exemption Notification was not availed and duty was paid by them. Also, it is not in dispute that they availed credit on the common inputs us....

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....e year 2010-11. Also, it is not contested by the appellant that in the Financial Year 2010-11, they had availed SSI exemption for clearance of their own goods up to the aggregate clearance of Rs. 150.00 lakhs and also availed credit on the inputs used in the manufacture of said exempted goods. It is their contention that since they complied with the Provisions of Rule 6(3) of CENVAT Credit Rules, 2004 hence, the credit cannot be denied to them even though the inputs used in the manufacture of goods up to the value of Rs. 150.00 Lakhs, had been exempted. 7. Clause- 2(d)(iii) of the Notification 08/2003 reads as follows: (iii) the manufacturer shall not avail the credit of duty on inputs under rule 3 or rule 11 of the CENVAT Credit Rule....