2019 (12) TMI 606

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....which credit was availed was used in respect of trading turn over, appellant is required to pay 6% in terms of Rule 6(3). Accordingly, the demand of an amount equivalent to 6% of sale value of trading was confirmed, the same was upheld by the Commissioner (Appeal), therefore, the present appeal is filed. 2. Sh. Amal Dave Learned Counsel appearing on behalf of the appellant submits that the appellant have reversed the Cenvat Credit attributed to the trading activity along with interest, after the adjudication of the Show Cause Notice. Therefore, the reversal of Cenvat Credit along with interest is in conformation of Rule 6(3A) of Cenvat Credit Rules, 2004. Therefore, demand of 6% under Rule 6(3) is not sustainable. He placed reliance on the....

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.....C.) M/s. Chandrapur Magnet Wires (P) LTD. V/s COLLECTOR OF C. EXCISE, NAGPUR. 5. This tribunal in various subsequent cases held that once the Cenvat Credit along with interest has been paid, no demand of 6% can be made. In the case of Mangal Textiles Pvt. Ltd., this tribunal vide Order No. A/12/WZB/AHD/2011 Dated 16.12.10 passed the following order. "5. We find that the issue before Hon'ble Supreme Court in the case of M/s. Chandrapur Magnet (Wires) Pvt. Ltd. was not about reversal being prior or after the removal. The dispute before the Hon'ble Apex Court was as if such reversal would amount to as if no credit was availed. It was under these circumstances that the expression "reversal by the appellant before clearance of the product" ....

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....redit having been made by the petitioners after removal of final product will make him dis-entitled to the benefit of Notification No. 15/94-C.E. involved in that case. The appellant having reversed the major part of the credit and having offered to reverse the balance credit, would be entitled to benefit of Notification No. 30/94, in the light of the law declared in the above decision. It may be mentioned here that as per the appellant such credit was lying in their books of account and was not utilized, in which case, no interest or penalty can be upheld against them. 7. In view of the above, the impugned order is set aside and appeal allowed with consequential relief to the appellant." In view of the various judgment cited by the Lea....