Cenvat Credit lapse only if product is exempted absolutely under Section 5A of Central Excise Act

Union of India Vs Kanchan India Limited (Rajasthan High Court) In the present case appellant has opted for exemption as per the Notification No.30/2004-CE where the exemption is conditional. As per Rule 11(3) (ii) CCR, Cenvat Credit balance will lapse only if the product is exempted absolutely under Section 5A of Central Excise Act. But since the Notification No.30/2004-CE dated 09.07.2004 is a conditional notification, hence only Rule 11(3)(1) of CCR would apply which does not mandate any such lapsing. In the present case , the goods are conditionally exempt, as is evident from S. No. 10 of t...