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TMI Blog2011 (3) TMI 1601X X X X Extracts X X X X X X X X Extracts X X X X ..... t of duty paid on inputs after utilizing the same for clearance of ceramic tiles though the respondent has violated the mandatory condition of the said notification? (b) Whether the Tribunal is right in law to accept the reversal of an entry of or repayment of the amount of CENVAT credit availed of by an assessee after the assessee is caught by the department acting in contravention of the Act and Rules applicable in the fact of the case? (c) Whether the Tribunal is right in law in holding that though at the time of clearance of goods the assessee was not entitled to get the benefit of the exemption notification, subsequent conduct of the assessee of reversing the entry at the time of getting caught would exempt it from the liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of exemption notification in a situation when the condition of notification allegedly have been contravened, when he had already availed cenvat credit on the inputs used in the manufacture of ceramic tiles. And it upheld the demand made under the show cause notice. 2.4 This order in original was carried in appeal before CESTAT, which upheld the claim of assessee manufacturer by its order dated 12.11.2009, which is challenged here. 3. We have heard extensively learned counsel Shri Darshan Parikh for the appellant department who has strenuously and vehemently submitted before this Court that present appeal and other such appeals arising from common order of Commissioner is in favour of such kind of respondents who have unscrupulously ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates that no credit of the duty paid on the inputs used in or in relation to the manufacture of such ceramic tiles ought to have been taken under Rule 3 or Rule 11 of the CENVAT Credit Rules 2002. 6. Rule 3 of the Cenvat Credits Rules, 2004 provides for the provisions under which the credit of various duties would be admissible to a manufacturer and as to how this credit can be utilised for payment of duty whereas Rule 11 of the said Rules speaks of deemed credit provisions. 7. Orderinoriginal states categorically that for allowing concessional rate of duty under the said notification, since the basic condition is about nonavailment of cenvat credit on the inputs used in or in relation to manufacture of such ceramic tiles, it is imper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailment of credit and the appellants are eligible for benefit of exemption Notification. Since the decision of the Hon'ble High Court (cited supra) cover the issue and also the decision of the Tribunal is in the identical case, we consider it appropriate to waive the requirement of predeposit, allow the stay petitions and allow all the appeals with consequential relief to the appellants, subject to the condition that the appellants would not claim refund of the credit and interest already debited by them. We also take note that all the appellants, who have not debited the credit, will be debiting within one or two days. 10.The tribunal has essentially relied on judgement of Gujarat High Court in case of the Commissioner of Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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