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2009 (3) TMI 1018 - AT - Central Excise
Issues:
1. Admissibility of one-time Cenvat credit under Rule 9A of Cenvat Credit Rules, 2002 for inputs received by the assessee. 2. Interpretation of Rule 9A in relation to the stock declaration date. 3. Clarification provided by the Board through Circular dated 30-4-2003. 4. Applicability of deemed credit to goods received from a trader. Analysis: The Revenue appealed against the setting aside of an adjudication order in a case involving the admissibility of one-time Cenvat credit under Rule 9A of the Cenvat Credit Rules, 2002. The Revenue contended that the respondents availed irregular deemed credit in violation of Rule 9A, inserted under Notification No. 25/2003, for processed/dyed fabrics. The main issue was whether the respondents were eligible for deemed credit on the stock declared as of 1-4-2003 or 31-3-2003. The Commissioner (Appeals) allowed the credit on the stock declared as of 1-4-2003, leading to the appeal by the Revenue. The Advocate for the respondents reiterated the Commissioner (Appeals)' findings and cited a Board Circular clarifying that stocks of inputs as of 1-4-2003 would be eligible for deemed credit under Rule 9A. After reviewing the records, it was established that the core issue revolved around whether one-time Cenvat credit was admissible for inputs cleared by a trader on 1-4-2003 and received by the assessee on 1-4-2004. The Commissioner (Appeals) held that the respondents were entitled to the credit on the stock received on 1-4-2003, as per the amended Rule 9A. The Circular dated 30-4-2003 further supported this interpretation. The Tribunal noted that the Circular changed the relevant date for input stock declaration to 1-4-2003, making inputs as of that date eligible for one-time credit under Rule 9A. The Tribunal found no reason to interfere with the Commissioner (Appeals)' order, rejecting the Revenue's argument that the fabrics in question were not duty-attracting at the supplier's factory. Additionally, since the goods were received from a trader, the Tribunal dismissed the Revenue's appeal, upholding the decision in favor of the respondents. In conclusion, the Tribunal dismissed the Revenue's appeal, affirming the entitlement of the respondents to the deemed credit under Rule 9A based on the stock received on 1-4-2003, in line with the Circular and the amended provisions.
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