Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 856 - AT - Central ExciseCENVAT Credit of the inputs lying in their stock - SSI benefit availed - credit availed after crossing of threshold limit of SSI Exemption - applicability of Rule 3 (2) of Cenvat Credit Rules, 2004 and Rule 4 (1) of CCR 2004 - Held that:- Both these Rules cannot be applied simultaneously - Rule 3 (2) prescribes the eligibility to avail cenvat credit as soon as the unit crosses threshold limit and rule 4 (1) prescribes particular condition for the availment of that credit. If a condition under rule 4 specifically disallows cenvat credit on a particular goods or service, the cenvat credit cannot be allowed under rule 3 of the Cenvat Credit Rules, 2004. Though the appellant has taken a plea that Rule 3 (2) of CCR, 2004 has been provided with the sole intention of law that the goods which have become dutiable after the exemption seized to exist, then naturally to avoid cascading effect of duty suffered on inputs involved on such goods, such benefit of cenvat credit is to be given to the manufacturer and any provision of law putting a limitation thereto shall not be applicable simultaneously to this provision. The appellate authority has rightly denied the availment of cenvat credit to the appellant for such of its stock. The invoices were beyond a period of six months of appellant crossing the threshold limit of SSI exemption - appeal dismissed - decided against appellant.
|