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TMI Blog2009 (4) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... se law relating to textile was changed w.e.f. 9-7-2004 which gave option to the manufacturer of grey fabrics to clear the goods without payment of duty subject to condition that no Cenvat credit is availed. The appellant firm was registered with the Excise, availing Cenvat credit and paying Central Excise duty on grey fabrics upto 8-7-2004 but opted to avail exemption w.e.f. 9-7-2004. 4. However, from the verification of the Excise invoices issued by the respondents, it was discovered that the appellant firm continued to issue Excise invoices after 9-7-2004 and upto 31-7-2004. During this period the appellant issued invoices from No. 1181 dt. 9-7-04 upto invoice No. 1463 dt. 31-7-04. In all, under these invoices excise duty amounting to R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants were required to reverse the credit when they opted to go out of excise. The reversal of credit was necessary in relation to - (a) raw materials (inputs) in stock as on 8-7-04 (b) raw materials (inputs) contained in work in process as on 8-7-04 (c) raw materials (inputs) contained in finished goods in stock as on 8-7-04 As per monthly return, an amount of Rs. 15,80,172/- was reversed on account of stock of inputs and Rs. 20,374/- on account of inputs contained in stock of finished goods. The monthly return further shows that Rs. 5,27,135/- was left in credit balance which remained unutilized and was surrendered. The department has not challenged the monthly ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28-4-05 along with interest. The amount of Rs. 60,373/- (6,03,600 - 5,27,135 - 16,092) is recoverable in cash under Section 11D along with the interest under Section 11DD of the Central Excise Act. The Range Officer shall suitably make an entry in the Cenvat Credit Account of the appellants to reflect the debit of Rs. 5,27,135/- against the duty liability determined under this order. 10. The Order in Original is modified as above. 8. The short question required to be decided in the present appeal is as to whether the appellate authority was justified in adjusting the Modvat credit against the duty demand or not? Admittedly, the appellants were having Cenvat credit on the day, they opted for exemption. If they would not have opted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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