TMI Blog2009 (8) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner (Appeals) upheld the order of the original authority. In the light of the various decisions held that- On perusal of the Rule 6 of Rules 2002 and the corresponding Rules, as mentioned above, we are of the view that the Appellants had correctly taken the credit and utilised, when the final product was dutiable and there is no requirement to reverse the credit on final product becoming exempt and such credit cannot be recovered under Rule 12 of Rules 2002 corresponding to Rule 57-I, 57AH of Rules 1944.” The facts of the present case are substantially the same as the facts in the case of Purewal Associates Ltd. In the light of the above, I find merit in the appeal by the party. Accordingly, I set aside the orders of the lower autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri-LB). 5. The learned SDR submits that it is settled that once the goods are exempted, the question of allowing the credit on the inputs does not arise as settled by the Hon'ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. v. C.C.E., Nagpur reported in 1996 (81) E.L.T. 3 (S.C.). He also relies on the decision of the Tribunal in the case of Tractors and Farm Equipment Ltd. v. C.CE., Madurai reported in 2007 (212) E.L.T. 223 (Tribunal) = 2007 (79) RLT 384 (CESTAT-Che.). He also submits that the decision of the Larger Bench of this Tribunal in the case of H.M.T. v. C.C.E., Panchkula reported in 2008 (232) E.L.T. 217 (Tri-LB) dealt with the input credit legally taken and utilised on the final products and held that the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6(1) of Rules 2002, which provides that the Cenvat credit shall not be allowed on such quantity of inputs, which is used in the manufacture of exempted goods, except certain circumstances as specified in the sub-rule (2) of the said Rule. Rule 6(1) of Rules 2002 is corresponding to Rule 57C and 57AD(1) of Rules 1944, Rule 6(1) of Rules 2001 and Rules 2004. 18. In Modvat/Cenvat scheme, Rule 57C of Rules 1944 and the corresponding rules time to time restricted the availing of credit on such quantity of inputs, which are used in the manufacture of final products, which are exempted from the whole of duty of excise or chargeable to Nil rate of duty. Rule 57CC of Rules, 1944 was introduced in 1996 for adjustment of credit in inputs used in exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of entitlement, there is no illegality or invalidity in taking credit of such Modvat/Cenvat credit, the right to utilise such credit against future liability towards duty become indefeasible and it is not liable to be reversed in the contingency discussed above.' 20. On perusal of the Rule 6 of Rules 2002 and the corresponding Rules, as mentioned above, we are of the view that the Appellants had correctly taken the credit and utilised, when the final product was dutiable and there is no requirement to reverse the credit on final product becoming exempt and such credit cannot be recovered under Rule 12 of Rules 2002 corresponding to Rule 57-I, 57AH of Rules 1944." 6.3 The facts of the present case are substantially the same as the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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