- (1.) This appeal has been preferred by the revenue against the order dated 4.5.2005 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi in Appeal No.E/2888/04-B, proposing following substantial question of law:- "Whether the manufacturer was not required to reverse the Cenvat Credit in respect of inputs lying in stock and as well as used in semifinished/ finished goods lying in stock as on 31.3.2001 which were used in the manufacture of excisable goods wholly exempted from payment of duty under Notification No.3/2001 dated 1.3.2001?"
(2.) The assessee is manufacturing various types of papers and opted for availing benefit of Notification No.3/2001 in respect of paper and paper board manufactured out of pulp containing 75% weight of material other than banboo, reeds or rags. The assessee was also manufacturing other type of papers which were cleared on payment of duty.
(3.) Case of the revenue was that manufacturer was liable to pay duty on goods mentioned under the notification equal to the credit allowed in respect of inputs lying in stock or used in finished excisable goods when option was exercised. The Tribunal upheld the claim of the assessee on the ground that the assessee was manufacturing all types of papers and the assessee was reversing the credit in respect of inputs used in papers under Notification No.3/2001.;