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TMI Blog2022 (12) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee should not avail Cenvat credit? HELD THAT:- From the above sub-rule (3D) of Rule 6, it is clear that even though assessee availed Cenvat credit but in compliance of Rule 6(3), they reversed the credit which will amount to non-availment of credit. With this statutory provision once the appellant complied with the provision of Rule 6(3) by reversing the credit, the condition of the notification automatically stand met. Therefore, it cannot be said that the appellant have violated the condition of notification. Since the penalty is consequential to demand in the present case and the said demand is not sustainable, the penalty on the appellant is also not sustainable. Hence there is no merit in the Revenue s appeal. Appeal allowed - deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of notification stood made. Therefore, even though on the receipt of input credit was availed but subsequently reversed 6% of the value of exempted goods, Notification No. 30/2004-CE is legally available to the appellant. He placed reliance on this Tribunal's decision in the case of Vineet Polyfab Pvt. Limited - order No. A/11109/2019 dated 11.07.2009. 4. Shri Prabhat K. Rameshwaram, learned Addl. Commissioner (AR) appearing on behalf of the Revenue reiterates the impugned order to the extent it confirms the demand. He submits that Notification No. 30/2004-CE does not provide any relaxation that after taking credit if the same is reversed, condition of notification will be satisfied. According to the condition of the notification once ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to non-availment of credit. With this statutory provision once the appellant complied with the provision of Rule 6(3) by reversing the credit, the condition of the notification automatically stand met. Therefore, it cannot be said that the appellant have violated the condition of notification. This issue has been considered by this Tribunal in the case of Vineet Polyfab Pvt. Limited cited by the learned Counsel wherein the following order was passed:- "4. We have carefully considered the submissions made by both sides and perused the record. We find that though the appellant have availed Cenvat credit in respect of inputs used in the manufacture of Polyester Texturised Yarn and cleared under nil rate of duty but it is also a fact that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deeming provision to the effect that payment of amount under sub-rule (3) should be considered as credit not taken for the purpose of such exemption notification. The appellant's case is covered by the said provision as pointed out by the ld. Counsel for the appellant even before the introduction of the said sub-rule in 2011. The Tribunal held that payment of amount under sub-rule (3)(i) of Rule 6 will make the assessee eligible for claiming such exemption as the present one. We find the case laws relied on by the ld. Counsel for the appellants clearly support their contention. The decisions of the Tribunal in Life Long Appliances Ltd. (supra), was affirmed by the Hon'ble Supreme Court reported at 2006 (196) E.L.T. A144 (S.C.). We find the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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