TMI Blog2015 (1) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the Apex Court[1999 (8) TMI 920 - SUPREME COURT OF INDIA] has to apply in the present case also and, therefore, even though the final product may be exempt from payment of excise, the assessee cannot be asked to reverse the Modvat credit already taken by it. - authority below, has upheld the order passed by the Commissioner (Appeals) holding that no reverse of Cenvat Credit is required to be given by the assessee. In view of law laid down by this Court, we see no reason to interfere with the impugned order. Substantial questions of law is answered accordingly - Decided against Revenue. - CEA No. 15/2009 - - - Dated:- 30-12-2014 - Sanjay Karol And P. S. Rana,JJ. For the Petitioner : Mr Sandeep Sharma, Sr. Adv Mr Rajiv Jiwan , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was lying as modvat credit in the accounts of the assessee was reversed. The assessee filed a claim for refund of the amount on the ground that it was not required to reverse the benefit of modvat credit taken by it on the inputs purchased prior to its opting to take benefit of the exemption notification referred to above. The Assessing Officer rejected the contention of the assessee. The assessee filed an appeal and the same was accepted and it was held that the modvat credit obtained by the assessee was not required to be reversed. Thereafter, the revenue approached the Customs, Excise Service Tax Appellate Tribunal (CESTAT) which dismissed the appeal in view of the law laid down by a Five Member Bench in CCE, Rajkot Vs. Ashok I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er considering the Rule 57, the Apex Court held as follows:- It is clear from these rules, as we read them, that a manufacturer obtains credit for the excise duty paid on raw material to be used by him in the production of an excisable product immediately it makes the requisite declaration and obtains an acknowledgement thereof. It is entitled to use the credit at any time thereafter when making payment of excise duty on the excisable product. There is no provision in the rules which provides for a reversal of the credit by the Excise Authorities except where it has been illegally or irregularly taken, in which event it stands cancelled or, if utilized, has to be paid for. We are here really concerned with credit that has been validly t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition is its actual use in or in relation to manufacture of end product by the manufacturer. The chargeability to duty or non-chargeability due to exemption or notified nil rate is to be considered at the stage before goods are actually produced, but on receipt of inputs intended to be used in manufacture of such goods. That being so ultimate clearance of goods at nil rate due to contingency existing at the time of removal does not affect the entitlement that legally arises long before that date. We are in respectful agreement with the judgment of the Kerala and Rajasthan High Courts. Since the language of Rule 9(2) of the Cenvat Rules is identical to that of Rule 57H( 5) of the Excise Rules, we feel that the interpretation given by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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