Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2013 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 419 - PATNA HIGH COURTCENVAT credit on Capital Goods - balance 50% of credit availed during subsequent years before the machinery put to use - What was the true meaning & scope of the expression “in the possession and use of the manufacturer of final products “in such subsequent years” in Rule 4(2)(b) of the Cenvat Rules - When Rule 4(2)(b) allowed credit provided the capital goods in question were in possession and use of the manufacturer “in such subsequent year”, whether the Tribunal erred in law in imposing a new condition that in such subsequent year the credit could not be taken prior to the date of installation of the capital goods. Held that:- The matter boils down to a narrow compass i.e. the interpretation of the phrase, “are in the possession and use of the manufacturer of final products in such subsequent years” occurring in the aforesaid Rule 4(2)(b) of the CENVAT Credit Rules, 2002 - In our opinion, the Mumbai Bench of the Tribunal was not right in reading the said phrase as, “are in the possession for use” - The law in respect of interpretation of taxing statutes was well defined and well settled - Commissioner of Sales Tax, U.P. v. Modi Sugar Mills Ltd.[1960 (10) TMI 65 - SUPREME COURT OF INDIA] in interpreting the taxing statutes, held, “In interpreting a taxing statue, equitable considerations are entirely out of place. Nor can taxing statutes be interpreted on any presumptions or assumptions. The court must look squarely at the words of the statute and interpret them. It must interpret a taxing statute in the light of what is clearly expressed; it cannot imply anything which is not expressed; it cannot import provisions in the statutes so as to supply any assumed deficiency”. The phrase, “in possession and use of the manufacturer of final products’ was clear and unambiguous - The phrase calls for one and only one interpretation and does not call for any external aid to cull the meaning of the said phrase - the phrase provided for two conditions, (1) the manufacturer should be in possession of the capital goods in the year in which it claims remaining 50% of the CENVAT credit; and (2) such capital goods shall be in use for manufacture of final products. Unless, the manufacturer satisfies both the aforesaid conditions, it cannot take CENVAT credit of remaining 50% of the duty paid by it. - Decided against the accessee.
|