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2013 (3) TMI 115 - AT - Central ExciseCenvat credit denied as not availed immediately on receipt of the inputs - appellants are manufacturers of steel and iron have captive mines - Held that:- Sub-rule (1) of Rule 4 of the Cenvat Credit Rules, 2004 prescribes that a manufacturer can avail Cenvat credit in respect of certain inputs immediately on their receipt and there is no time limit period prescribed in these rules in this regard. The word ‘may’ in sub-rule (1) of Rule 4 cannot be read as ‘shall’. The Department’s contention would have been correct if sub-rule (1) of Rule 4 had provided that Cenvat credit in respect of inputs ‘shall’ be taken immediately on receipt of the inputs. See para 10 of the Board’s Circular No. 345/2/2000-TRU, dated 29-8-2000 & Coromandel Fertilizers Ltd. v. CCE (A) (2008 (8) TMI 333 - CESTAT, BANGALORE), Steel Authority of India Ltd. v. CCE (2001 (1) TMI 144 - CEGAT, NEW DELHI) and Tamilnadu Petroproducts Ltd. v. CCE reported in 2003 (160) E.L.T. 199 (2003 (3) TMI 217 - CEGAT, CHENNAI). Moreover in this case there was a valid reason also for not taking the credit during April, 2006 to December 2006 period, as the judgments of the Apex Court and the Tribunal on the issue of eligibility for Cenvat credit of the inputs used in the mines were against the appellant and this issue was ultimately decided in the appellant’s favour sometimes in 2008 - the impugned order is not sustainable. The same is set aside. The appeal is allowed.
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