9911796707
TMI Blog2018 (9) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise date 09.07.2004 do not grant exemption in absolute. In fact, it is a conditional exemption that if the assessee has not availed Cenvat credit on inputs, the exemption is available. The provision of Rule 11 (3) clause 2 are applicable only in a situation where exemption is absolute. Admittedly, in this case exemption is not absolute. In that circumstances, the provisions of Rule 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case are that the assessee is manufacturer of synthetic yarn and other textile products and clearing the goods classifying the same under Chapter 53 and 55 of the Central Excise Tariff Act, 1985. The assessee was availing Cenvat credit on input, capital goods and input services and utilizing the same for payment of duty and clearing the goods on payment of duty. With effect from 1.04.2006 the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the whole of the credit shall lapse. Therefore, the proceedings were initiated against the assessee for recovery of the Cenvat credit remained unutilized by the assessee and the matter was adjudicated. The demand on account of denial of Cenvat credit was confirmed along with interest and penalties were also imposed. Against the said orders, the assessee is in appeal in Appeal No. E/2013/2012, E/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 11 (3) (2) are not applicable to the facts of this case, therefore, we hold that the Cenvat credit lying unutilized on 01.04.2006 shall not lapse and same can be utilized by the appellant latter on. In these terms we did not find any merit in the impugned orders against the appellant in Appeal No.E/2013/2012 E/70487/2016, therefore, these impugned orders are set aside. 5. With the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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