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2010 (9) TMI 136 - DELHI HIGH COURTCenvat Credit – invoices to the appellants showing the element of BED paid on inputs and not showing any element of AED as no AED was leviable on final products for the purpose of taking Cenvat credit - No credit of AED taken and utilized by the appellants - because credit of AED paid on an input could be utilized towards payment of AED only leviable on a final product - amendment was made in Cenvat Credit Rules, 2002 that credit of AED paid on input can be utilized towards payment of BED and special excise duty as well leviable on a final product. Further, by a Circular dated 06.03.2003, it was also clarified that any credit of AED accruing prior to 01.03.2003 to a manufacturer could also be utilized towards payment of BED and SED as well on final product (Clause 78 of Finance (No.2) Bill, 2004) - appellants claimed Cenvat credit of AED (GSI) – Held that: - duty of excise or service tax due on the input or input service has been paid and such input or input service has actually been used or is to be used in the manufacturing of final products or in providing output services - matter is remanded back to the Joint Commissioner, who shall scrutinize the documents furnished by the appellants and satisfy himself and record the satisfaction, if any, in term of Sub-Rule(2) of Rule 9 of the Cenvat Credit Rules, 2004 and if the requirements laid down therein are satisfied, the AED (GSI) shall be allowed to the appellants – Appeal is dismissed accordingly.
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