2018 (7) TMI 1710

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....cases are that the appellant is a manufacturer of paper and paper board which are cleared on payment of duty. The appellant has also availing Cenvat Credit on inputs and services and paying of duty on the goods manufactured by the appellant. W.e.f. 01.04.2009, the appellant sought to avail the benefit of exemption in respect of paper and paper board manufactured and cleared by them at Sr.90 of Notification No. 04/2006-CE dated 01.03.2006. Exemption under the said notification is available to the appellant upto the clearance of 3500 MT per year if the raw materials used to manufacture in the said goods is made from unconventional raw materials, for that there is no dispute. 3. Thereafter, the facts of the case in both appeals are little bit....

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....e appellant after crossing the limitation of clearance 3500 MT in June, 2010 payment of duty on paper and paper boards, the case of the Revenue is that the appellant is not entitled to avail the said Cenvat Credit in terms of Rule 11(2) of the Cenvat Credit Rules, 2004. Therefore, the show cause notice dated 03.08.2011 was issued for the period from April, 2010 to March, 2011 by invoking the extended period of limitation. Both the show cause notices were adjudicated the Cenvat Credit availed by the appellant was denied. Consequently, the same were demanded from the appellant alongwith interest and penalties were imposed. Against the said orders, the appellant is before us. 3. Heard the parties. 4. Both the appeals are dealt with separate....

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....envat Credit pertains to the inputs, semi finished goods and finished goods lying in their stock on the date of opting for exemption. Admittedly the appellant has reversed the Cenvat Credit on inputs, semi finished goods and finished goods lying in their stock on 01.04.2009. As per Rule 11(3)(ii), if the final goods is exempted absolutely then the whole of the credit lying in Cenvat Credit shall lapse. Admittedly, in the case in hand, the product manufactured by the appellant is exempt conditionally as Notification No. 04/2006 dated 01.03.2006 at Sr. No. 90 exempts the goods manufactured by the appellant upto 3500 MT. Therefore, the exemption under the said notification is not absolute. In that circumstances, the provisions of Rule 11(3)(....