2019 (4) TMI 435

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.... that the Appellant is engaged in manufacture of Polyester Texturised yarn falling under chapter 60 of the CETA. They were availing cenvat credit of inputs used in manufacture of final products and capital goods. The Appellant for the period 09.07.2004 to February'2007 availed benefit of Notification No. 29/2004-CE dated 09.07.2004 and cleared goods on payment of duty. From 01.03.2007, they started availing benefit of Notification No. 30/2004-CE dated 09.07.2004 and reversed cenvat credit proportionate to goods lying in stock. There was balance of Rs. 2,86,83,157/- in cenvat account after such reversal. The Appellant thereafter in subsequent periods shifted their manner of clearance from Notification No. 30/2004-CE dated 09.07.2004 to 29/20....

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....t credit on account of reversal of credit on stock while switching over from the dutiable scheme No. 29/2004-CE dated 09.07.2004 to exemption scheme under Notification No. 30/2004-CE dated 09.07.2004 during the period March'2007 to December'2011. The show cause notice raised demands by invoking larger period of limitation. The demands were based on the ground that in terms of Rule 11 (3) of CCR, 2004 as the final products are exempted in terms of Notification No. 30/2004-CE dated 09.07.2004 which was issued under section 5A, the credit on the date of opting of exemption shall lapse. Further they have availed credit on capital goods which was used exclusively for manufacture of exempted goods whereas the same is not available in terms of Rul....

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....(10) TMI 11-CESTAT-New Delhi. 5. Sh.T. G. Rathod, Ld. Joint Commissioner (AR) appearing for the revenue supports the impugned order. 6. Heard both the sides and perused the records. We find that the notification No. 30/2004-CE dated 09.07.2004 is not an absolute notification but a conditional notification issued under section 5A. The notification has the condition of non availment of cenvat credit. The sub-rule (3) (i) and (ii) of Rule 11 of the CCR, 2004 are separate. In the present case the sub rule 3 (i) would thus apply as per which the manufacturer is required to pay an amount equivalent to the CENVAT Credit in respect of inputs used in the manufacture of said final product and is lying in stock or in process or is contained in fina....