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TMI Blog2015 (12) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... of the conditions of notification. We find that this issue is no more res integra in view of the decision of Hon'ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd Vs CCE Nagpur - [1995 (12) TMI 72 - SUPREME COURT OF INDIA]. The Tribunal in the case of Leotronics Scales Pvt.Ltd. Vs CCE Chandigarh - [2015 (4) TMI 128 - CESTAT NEW DELHI], after following the decision of Hon'ble Supreme Court, allowed the appeal on this issue. - present case is squarely covered by the decision of Hon'ble Supreme Court and the Tribunal. - Impugned order is set aside - Decided in favour of assessee. - Appeal No.ST/167/2008-DB - Order No. A/11614 / 2015 - Dated:- 5-11-2015 - Mr. P.K. Das, Member (Judicial) And Mr. P.M. Saleem, Member (Technical) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22,981.00 and also availed the abatement under Notification No.1/2006-ST, dt.01.03.2006. There is no dispute on the fact that upon detection, of the mistake, the Appellant reversed the credit. The Joint Commissioner (Preventive) Vadodara dropped the proceedings. 4. For the proper appreciation of the case, we reproduce the findings of Joint Commissioner (Preventive) as under:- I find that the Assessee has availed the abatement of 67% as per Notification No.1/2006-ST, dt.01.03.2006 as well as availed the CENVAT Credit of Service Tax paid on input service which makes them ineligible for the benefit of the benefit of exemption Notification No.1/2006-ST, dt.01.03.2006. However, the assessee vide their reply dt.19.11.2007 hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 981.00 which in turn, would make them ineligible for a major benefit of abatement as provided by the exemption notification. Therefore, it appears that the proceedings initiated in the instant show cause notice are liable to be dropped. However, the assessee is required to be more careful in future. 5. In the impugned order, the Commissioner of Central Excise observed that the Assessee has necessarily to comply with the conditions of notification. It is also observed that reversal of CENVAT Credit does not absolve from violation of the conditions of notification. We find that this issue is no more res integra in view of the decision of Hon'ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd Vs CCE Nagpur - 1996 (181) E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit for the duty paid on the inputs utilised in the manufacture of the final exempted product under Rule 57A. In other words, the claim for exemption of duty on the disputed goods cannot be denied on the plea that the assessee has taken credit of the duty paid on the inputs used in manufacture of these goods. 11. Perusing the facts of the three cases referred above, we find that the facts in the case of Chandrapur Magnet Wires Pvt.Ltd. are more similar to the facts of the case in hand. Therefore, following the ratio of Chandrapur Manget Wires Pvt.Ltd. (supra), we set aside the demand of Service Tax of ₹ 3,26,378/- alongwith penalties. . 6. On a query from the Bench, the learned Advocate submits that they have paid the int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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