2025 (2) TMI 517

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....ion Notification No.10/2010 dated 27.02.2010, the final product and by-products manufactured by the respondents got exempted; Revenue was of the opinion that the respondent was required to reverse the CENVAT credit of Rs.29,74,339/- contained in the stock of inputs/ raw materials as on 27.02.2010 and that available credit of Rs.1,25,10,155/- should lapse in terms of Rule 11(3) of CENVAT Credit Rules, 2004; the respondent failed to reverse the credit of Rs.1,54,84,494/- as on 01.03.2010; the appellant continue to avail CENVAT credit, of Rs.41,71,782/-, contained in capital goods, inputs and input services, used in the manufacture of exempted goods during the period March 2010 to January 2012; further, it appeared that out of the credit of Rs....

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....tands covered under a different Show Cause Notice dated 06.04.2011and the said demand was confirmed vide OIO No. 30/CE/CHD-II dated 22.04.2013, it would not be appropriate to again confirm that part of demand on some other ground; the issue in the SCN dated 06.04.2011 was fraudulent availment of inadmissible CENVAT credit of Rs. 1,09,76, 108/- during the period from 2006-07 to 2009-10 whereas the issue in the instant SCN dated 24.08.2012 was about the fact that w.e.f. 01.03.2010 remaining CENVAT credit of Rs. 1,25,10,155/-would have lapsed, in terms of provisions of Rule11(3) of the CC Rules. he submits that the Respondent had reversed the amount of CENVAT credit of Rs. 1,09,76,108/, on 03.08.2012, under protest. However, as stipulated in R....

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....that issue dealt therein was regarding fraudulent availment of inadmissible Cenvat credit of Rs: 1,09,76,108/- during the period from 2007-08 to 2009- 10. Vide said 0I0 dated 22.4.2013, the demand of Cenvat credit of Rs. 1,09,76,108/- has been confirmed and the amount already debited and has been appropriated; demand of interest on the confirmed demand had been confirmed and penalty of Rs. 94,66,998/- under Section 11AC of the Act read with Rule 15(2) of the Credit Rules had been imposed. As the demand of Cenvat credit of Rs.1,09,76,108/- has already been confirmed vide said OI0 dated 22.4.2013, I do not find it appropriate to again confirm that part of demand on some other ground. 5. We find that in terms of Rule 11(3) of CENVAT Credit ....

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....thereon or is chargeable to nil rate of duty. Moreover on the facts of that case, it was found that the manufacturer had availed of the credit at the time of the clearance of the goods and had suo motu reversed it to avail the exemption later on almost after 11 months when he claimed refund of Modvat credit and, therefore, it was held that he was not entitled to exemption. Thus in the case of Amrit Paper (supra), it was the case of availing exemption and the exemption was based on the condition that the credit should not be availed on the inputs utilized in the manufacture of the product. In the instant case that is not the position and, therefore, the ratio of the Hon'ble Apex Court's judgment in the aforesaid case will not apply. ....