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2017 (2) TMI 297 - AT - Central ExciseCENVAT credit - whether the finished goods manufactured by the appellant, notified to be exempt with effect from 09.07.2004 disentitles the appellant to the Cenvat credit on inputs lying in stock, and inputs used in manufacture of finished goods prior to 09.07.2004 but such goods not cleared as on 09.07.2004 as well as input lying in work in progress (WIP) remaining in stock as on 09.07.2004? Held that: - Law is well settled in Dai Ichi Karkaria Ltd.[], that there is no provision in the rule to recover Cenvat credit in the event the goods manufactured prior to a cutoff date are cleared at a subsequent date. The Cenvat credit earned being permitted to be used with indefeasible right that cannot be denied in absence of any express provision of law in that behalf. None can say out of which raw material the finished product was manufactured and credit is not attributable to a specific input used in manufacture. One-to-one correlation not being contemplation of law, credit is available to a manufacture on very day when raw material reaches factory, with a right to set off such credit against liability to discharge duty on clearance of output - appeal allowed. Rule 8 of Cenvat credit Rules 2002 permitting carry forward of the unutilised Cenvat credit remained in the hands of the amalgamating company to be utilized by the amalgamated company, there is no question of any demand or recovery of the Cenvat credit amount from the appellant for which appeal is allowed.
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