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2017 (8) TMI 515 - CESTAT BANGALORESSI exemption - N/N. 8/2003 dated 1.3.2003 - CENVAT credit - department observed that during the month of August 2005, they have taken credit of duty received and used in the manufacture of final products during the year 2004-05 with a remark that these credit were not taken at the relevant period - Rule 11 (2) of the CCR - Held that: - the credit pertaining to year 2004-05 cannot be taken in year 2005-06 as the same lapses in the event of appellant's option to avail SSI exemption from the very beginning. During 2005-06 also once the appellants crosses exemption limit they can only take credit of inputs lying in stock or in process or contained in final product lying in stock on the date they started paying duty. In the present case, related inputs were admittedly received and used during 2004-05 itself. It is not the appellant's case that inputs were still lying in stock one way or the other when they graduated to payment of duty during 2005-06. The appellants have also argued that there is no time limit for taking CENVAT credit. I find that this right of the appellants can be allowed to be exercised to the extent such exercise is not inconsistent with provisions of Rule 11(2) and 3(2) of CENVAT Credit Rules, 2004. In the present situation, availment of credit as claimed by the appellants shall infringe on the operation of Rule 11(2) as well as Rule 3(2). Appeal dismissed - decided against appellant.
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