Tribunal allows reversal of CENVAT credit; Section 11D not applicable for amounts reversed u/r 6(3) of CENVAT Credit Rules.

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....The appellant had reversed CENVAT credit on input services amounting to 10.3% in terms of Rule 6(3) of the CENVAT Credit Rules, 2004. The Tribunal held that Section 11D of the Central Excise Act, 1944, which deals with recovery of duty not paid, cannot be invoked in this case. Firstly, the amount reversed was not a duty of excise. Secondly, the appellant had already reversed the amount. The Tribunal relied on CBEC Circular No. 870/08/2008-CX, which clarified that Section 11D shall not apply to amounts reversed u/r 6(3) of the CENVAT Credit Rules, 2004, even if recovered from customers. Consequently, the demand u/s 11D was held unsustainable.....