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TMI Blog2009 (9) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants removed the inputs as such after reversal of Cenvat credit on input availed by them under Rule 3(5) of Cenvat Credit Rules, 2004 during the period January, 2005 to October, 2005. It has been alleged that the appellants had not reversed the Cenvat credit of service tax availed in respect of transportation of goods by road. Original authority confirmed the demand of Rs. 62,948/- and appropriated the said amount as deposited by them and also imposed penalty of equal amount along with interest. Commissioner (Appeals) upheld the adjudication order. 2. Learned Advocate on behalf of the appellants submits that Rule 3(5) of the Rules provides that the manufacturer of final product shall pay an amount equal to the credit availed in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product or premises of the provider of output service on or after the 10th day of September, 2004; and (ii) any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004. xxx xxx xxx xxx (5) When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9." 5. Rule 3(1) provides that the manufacturer s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 3 of the Cenvat Credit Rules, 2004 provides for recovery of equal amount of credit. There is no such provision to reverse credit of service tax availed in relation to such inputs or capital goods when removed from the factory. Moreover, Rule 14 of the Cenvat Credit Rules, 2004 provides for recovery of Cenvat credit availed or utilized wrongly. In the instant case, the appellants had taken the credit correctly in terms of the statutory provisions. No provision exists in the Finance Act, 1994, which would render utilization of such credit erroneous for the reason that some of the inputs, transport of which yielded GTA service tax credit are returned as not suitable. The credit availed is any way used to pay duty on the finished goods. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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