Order date: 20 January,2023

Parties: Ruia Rayon Pvt Ltd vs C.C.&- Silvasa

Facts

• The appellant, Ruia Rayon Pvt Ltd, have availed the exemption Notification No.30/2004- CE dated 09.07.2004.
• The issue involved in the present case is that whether the appellant is entitled to carry forward the Cenvat credit after the date of availment of exemption Notification No. 30/2004-CE dated 09.07.2004, in terms of Rule 11(3) of the Cenvet Credit Rules, 2004 and whether the said credit can be utilised for payment of duty.

Issue –

• Whether the appellant is entitled to carry forward the Cenvat Credit?

Order

• The Tribunal relied on various judgements and held that the bar of lapsing of credit is applicable only when the assessee avails the absolute exemption notification. Therefore, exemption notification No. 30/2004-CE, being a conditional one, bar of lapsing of credit shall not apply.
• Notification No. 30/2004-CE dated 09.07.2004 is not an absolute notification but a conditional notification issued under section 5A.
• Hence the impugned order is not sustainable.