2017 (2) TMI 250

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... HI], where it was held that a harmonious reading of Rules dealing with Cenvat Scheme and particularly Rule 57AC and Rule 57AD of the Central Excise Rules, 1944 makes it very evident that Cenvat credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods - demand of reversal of Cenvat Credit upheld - penalty set aside - appeal disposed off - decided par .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... m it has been argued that the Rule 6 is not applicable to the instant case. It has been argued that the said rule applies only at the time of taking credit. It has been argued that it does not apply in a situation where after rightfully taking credit, finished goods become exempted. For this the appellant relies on the Rule 9 (2) of the Cenvat Credit Rules, 2002 where it has been provided that whe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... have gone through the rival submissions. I find that the exact the same issue has been decided by the Tribunal in the case of Albert David Ltd. (supra) . After examining various decisions including those cited by the appellant the Tribunal has observed as follows: 5. We have considered the submissions of both the sides. The undisputed facts are that the Cenvat credit was taken by the Appe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of Rules dealing with Cenvat Scheme and particularly Rule 57AC and Rule 57AD of the Central Excise Rules, 1944 makes it very evident that Cenvat credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods. We agree with the findings in the impugned Order that the decision in Premier Tyres Ltd. And consequently decision in Ashok Iron and Steel case, is .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d Rules. We are, however, of the view that in the facts and circumstances of the case, no penalty is imposable on the Appellants. We order accordingly. 5. Hon ble Apex Court has dismissed the appeal against the said order. Relying on the aforesaid order, demand of reversal of Cenvat Credit is upheld and the penalty is set aside. ( Pronounced in Court on 06/01/2017) - - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X