2018 (8) TMI 1277 – GUJARAT HIGH COURT – 2018 (15) G. S. T. L. 486 (Guj.) – CENVAT credit – inputs attributable to manufacture of exempted final products – reversal of CENVAT credit – Rule 6 of Cenvat Credit Rules, 2004 – Held that:- Since the assessee had reversed the cenvat credit with interest, no further adverse consequence should follow – This Court in case of Commissioner v. Ashima Dyecot Ltd [2008 (9) TMI 87 – HIGH COURT GUJARAT] has observed that reversal of credit amounts to non-availment – tax appeal dismissed. – R/TAX APPEAL NO. 627 of 2018 With R/TAX APPEAL NO. 629 of 2018 Dated:- 14-6-2018 – MR. AKIL KURESHI AND MR. B.N. KARIA, JJ. For The Petitioner : Mr Nirzar Desai (2058) ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESH
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e assessee is a manufacturer of ceramic products. These are byproducts and is called body clay powder which envisages nil rate of duty. The assessee did not maintain separate accounts and initially availed cenvat credit on the exempt product also. However, subsequently, it appears that such credit so availed was reversed with interest. The department however still objected to such procedure. 3. The appellate authority and the Tribunal held that since the assessee had reversed the cenvat credit with interest, no further adverse consequence should follow. We notice that this Court in case of Commissioner v. Ashima Dyecot Ltd reported in 232 ELT 580 has observed that reversal of credit amounts to non-availment. 4. We do not find any error in t
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