TMI Blog2010 (7) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... dit Rule cannot therefore, be sustained - The question of law, therefore, is answered in favour of the appellant. - 545 of 2005 - - - Dated:- 2-7-2010 - MR.JUSTICE F.M.IBRAHIM KALIFULLA, MR.JUSTICE M.M.SUNDRESH, JJ. For Appellant : Mr.K.Ravi Anantha Padmanabhan, J U D G M E N T F.M.IBRAHIM KALIFULLA, J. Though notice was duly served on the respondents, there is no representation either in person or through counsel. We therefore, proceed to decide this appeal on merits. 2. In this appeal, the question of law that arises for consideration is as follows:- " Whether the Hon'ble CESTAT has committed an error of law in holding that the provision prevailent after 01.03.2002 and prior to 01.04.2000 would be deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een in operation during the interregnum period and therefore, the first respondent was entitled for availing 100% CENVAT credits. 5. We heard Mr.K.Ravi Anantha Padmanabhan, the learned Senior Central Government Standing Counsel for the appellant and having perused the order impugned as well as the earlier orders of the lower authorities and the relevant rule, we do not find any justification to sustain the order of the Tribunal. 6. To appreciate the contention of the learned counsel for the appellant, Rule 4(2) (a) and (b) of CENVAT Rules 2001 can be usefully extracted, which reads as under:- " 4(2)(a) The CENVAT credit in respect of capital goods received in a factory at any point of time in a given financial year shall be take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial year came into force only with effect from 01.03.2002. It is stated that such a benefit was prevailing even prior to 01.04.2000. However, during the relevant financial year as the benefit extended was only to avail upto 50% of cenvat credit of the duty paid on such capital goods, we fail to understand, how there was any scope for invoking the provisions contained in Section 21 and 24 of General Clauses Act. In fact, under Section 38(A) of the Central Exercise Act, it is specifically provided as under:- " 38A. Effect of amendments, etc., of rules, notifications or order:- Where any rule, notification or order made or issued under this Act or any notification or order issued under such rule, is amended, repealed, superseded or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 21 and 24 of the General Clauses Act for the purpose of interpretation of Rule 4(2) of CENVAT Rules 2001. In this respect, it is worthwhile to refer to the decision of the Hon'ble Supreme Court reported in 2000 (119)E.L.T.257 (S.C.) KOLHAPUR CANESUGAR WORKS LTD VS UNION OF INDIA. The relevant part contained in paragraph 33 can be usefully referred to which reads as under:- ".........33. The Full Bench appears to have lost sight of the position that all the relevant terms ie., 'Central Act', 'Enactment' 'Regulation', and 'Rule' are defined in sub-section 3(7), 3(19), 3(50) and 3(51) respectively of the General Clauses Act. When the term Central Act or Regulation or Rule is used in that Act reference has to be made to the definition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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