Case Law Details
Vineet Polyfab Pvt Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
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 appellant have reversed the amount equal to 6% as provided under Rule 6(3) of Cenvat Credit Rules, With reference to similar notifications, such condition of non-availment of credit, a specific provision is made by inserting sub Rule (3D) in Rule 6 of Cenvat Credit Rules, 2004 which reads as under:-
“Payment of an amount under sub-Rule (3) shall be deemed to be Cenvat credit not taken for the purpose of an exemption notification wherein any exemption is granted on the condition that no Cenvat credit of inputs and input services shall be taken.”
From the plain reading of the above provision, it is observed that the provision of sub Rule (3D) was specifically provided under the statute to meet with the situation as existing in the present case. The appellant have reversed or paid the amount in terms of sub Rule (3) of Rule 6, therefore, as per sub Rule (3D), it will amount to not taking of Cenvat credit and when this be so, the condition of Notification No. 30/2004-CE stands complied.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
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