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2013 (9) TMI 279 - CESTAT NEW DELHIAvailing Cenvat Credit of duty paid inputs, semi-processed inputs and inputs contained in the final products lying in the stock after withdrawal of exemption - earlier assessee was availing benefit of Notification No. 10/2002-C.E and paying Central Excise duty @ 4% on the value of their final product without availing benefit of Cenvat credit – Held that:- vide Notification No. 10/2003-C.E., dated 1-3-2003 the above referred exemption in the form of reduction in excise duty to the extent of 4% was partially taken away by increasing the rate of the excise duty payable from 4% to 8% ad valorem and the condition of non-availament of Cenvat credit by the assessee was done away with. Cumulative reading of the above referred two notifications clearly indicate that w.e.f. 1-3-2003 the exemption from excise duty on its final product available to the appellant prior to 1-3-2003 was partially withdrawn to the extent of 4% ad valorem by increasing the excise duty from 4% to 8%. Thus, in our view to that extent the final product of the appellant cease to be exempted from excise duty. Even as per Rule 3(1) of the Cenvat Credit Rules, 2002 the appellant is entitled to Cenvat credit on the inputs in question which were either available in stock or in process or were contained in the final product lying in stock as on 1-3-2003. Thus, viewing the problem from any angle the appellant is entitled to claim Cenvat credit under Rule 3 of the Cenvat Credit Rules, 2002. – Decided in favor of assesse.
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