2019 (7) TMI 782

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....Ms. Rinki Arora, Advocate for the appellant. Shri P.R. Gupta, Authorised Representative for the respondent. ORDER ANIL CHOUDHARY: The issue in this appeal is whether the cenvat credit taken on capital goods during the period when the goods manufactured by the appellant are taxable and whether the same lapses subsequently when the appellant had availed SSI exemption. The admitted facts ....

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....ordingly, the products of the appellant became taxable. The appellant, being eligible, availed SSI exemption w.e.f. 30.06.2006. All throughout, the appellant in their returns filed before the Department were carrying un-utilised balance of cenvat credit of the capital goods. Subsequently, show cause notice dated 28.2.2011 was issued invoking extended period of limitation, as it appeared to Revenue....

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....d Table; (b) Rule 11(2) Cenvat Credit Rules, 2002:- A manufacturer who opts for exemption from the 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 inputs or input services, before such option is exercised, shall be required to pay an amount equiv....

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....is granted based upon the value or quantity of clearances made in a financial year. (emphasis supplied). 4. Further, para-2 of the Notification No.8/2003 (SSI exemption) provides as under:- "(iii) The manufacturer shall not avail the credit of duty on inputs under Rule 3 or rule 11 of the CENVAT Credit Rules, 2002 (hereinafter referred to as the said rules), paid on inputs .......