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2018 (10) TMI 1762 - AT - Central ExciseCENVAT credit - taking of belated credit - While receiving the duty paid goods in the factory, the appellant did not avail the CENVAT Credit of the duty amount indicated in the invoices immediately and had availed such credit after a lapse of 1½ years from the date of receipt of duty paid goods in the factory - Rule 4 (1) of Cenvat Credit Rules, 2004 read with Rule 16 of the Central Excise Rules, 2002 - HELD THAT:- Rule 16 of the Central Excise Rules, 2002 permits a manufacturer to take CENVAT Credit of Central Excise duty paid on the goods, which are received in the factory for the purpose of remade, refined, reconditioning or for any other reason. Further, Rule 4 of the Cenvat Credit Rules, 2004 provides that the CENVAT Credit in respect of inputs may be taken immediately on receipt of the inputs in the factory by the manufacturer. In this case, the fact is not in dispute that the duty paid goods initially removed from the factory were received back for the purpose of carrying out some process and after completion of such process/activities; the same were removed from the factory on payment of Central Excise duty. Thus, under the provisions of Rule 16 of the Rules, the appellant was entitled to take CENVAT Credit of Central Excise duty paid on excisable goods, which were subsequently returned back to the factory. On examination of the provisions between the C.P.C. vis-à-vis, Cenvat statute, it transpires that the later provisions were designed in such manner that the authorities should take liberal view in extending the benefit of credit, appreciating the overall facts and circumstances of the case and the statutory provisions cannot be strictly applied for denying the benefit of legitimate claim of the Cenvat amount. Due to reasonable cause, the appellant did not avail the credit immediately on receipt of the goods, for which the substantive right conferred in the Cenvat statute cannot be denied. Appeal allowed - decided in favor of appellant.
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