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TMI Blog2018 (8) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... cash, if, no balance is lying in cenvat credit account - The provision of Rule 11(3) of the Rules are only the purpose that if assessee is opting for exemption, in that case assessee is required to reverse the cenvat credit on inputs, semi finished goods and finished goods lying in stock on the date of opting for exemption. It has also been provided that if exemption is absolute, in that case balance in cenvat credit after reversal, shall lapse, so provisions of Rule 11(3) are only transitional provision. As there is no balance in cenvat credit account, in that circumstances, the appellant are not required to pay cenvat credit in cash for inputs, semi finished goods and finished goods lying in stock as on 01.04.2012 - Appeal allowed - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods lying in stock on the date of opting for the exemption was demanded alongwith interest and penalties were also imposed. Against the said order, the appellants are before me. 3. Ld. Counsel for the appellant submits that as per Rule 11(3) of the Cenvat Credit Rules, 2004 the assessee is required to reverse the cenvat credit contained in inputs, semi finished goods and finished goods lying in stock on the date of opting for exemption. But, there is no provision under Rule 11(3) of the Cenvat Credit Rules, 2004 the appellant to pay the amount in cash. Therefore, it is a misunderstanding of the provisions of Rule 11(3) of the Cenvat Credit Rules, 2004 and appellants are not required to pay the amount of cenvat credit lying in stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion issued under section 5A of the Act; or (ii) the said final product has been exempted absolutely under section 5A of the Act, and after deducting the said amount from the balance of cenvat credit, if any, lying in the credit, the balance, if any, still remaining shall lapse and shall not be allowed to be utilised for payment of duty on any other final product whether cleared for home consumption or for export, or for payment of service tax on any output service, whether provided in India or exported. 7. On going through such provision, the assessee is require to reverse the cenvat credit lying in their cenvat credit account on the date of opting for exemption on the inputs, semi finished goods and finished goods lying in stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of opting for SSI Exemption Scheme. The Rule provides for calculation of such amount of cenvat credit in respect of inputs lying in stock on the date when such option is exercised and after deducting the said amount, the balance, if any, lying in his credit still shall lapse and shall not be allowed to be utilised. Accordingly, I find force in the argument of the learned advocate for the assessee/ appellant. Accordingly, the appeal is allowed and the impugned order is set aside. The appellant will be entitled to consequential benefits, in accordance with law . 8. Again the issue has been examined by the Hon ble Punjab Haryana High Court in the case of C.N.C. Comercial Ltd (supra) wherein the Hon ble High Court observed as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra) this Tribunal has examined the provisions of Rule 11 of the Cenvat Credit Rules, 2004 and thereafter the Tribunal came to the conclusion that if there is no balance in cenvat credit then the assessee is not required to avail cenvat credit in cash. Further, the provisions of Rule 11(3) of the Rule have been examined by this Tribunal in the case of M/s Ergan Plastics Industries Ors vs. CCE, Jaipur-II vide F. O. No. 50272 50277/2018 wherein it was held that the assessee is not to pay cenvat credit in cash. In that circumstances, relying on above cited decisions, I allow the appeals. 11. In these terms, the impugned orders are set aside and appeals are allowed with consequential relief. ( Dictated and pronounced in the open C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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