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TMI Blog2013 (3) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment of the Apex Court in the case of Vikram Cement v. CCE - 2006 (194) E.L.T. 3 (S.C.), they took Cenvat credit of these inputs during the period from July, 2007 to March, 2007. The total Cenvat credit so availed was Rs. 2,73,12,779/-. The department issued a show cause notice dated 30-1-2008 seeking denial of Cenvat credit and its recovery along with interest on the ground that in terms of the provisions of Cenvat Credit Rules, 2002/2004 and Central Excise Rules, 1944, the Cenvat credit is required to be availed immediately on receipt of the inputs and in this case, the Cenvat credit availed by the appellant after a long time from the date of the receipt of the inputs is not admissible. The show cause notice also sought imposition of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this does not mean nor is it even intended that if the manufacturer does not take credit as soon as the inputs are received in the factory, he would be denied the benefit of Cenvat credit; and such an interpretation is not tenable, that in view of this circular of the Board, the ground on which the Cenvat credit has been denied is without any basis, that same view has been taken by the Tribunal in the case of Steel Authority of India Ltd. v. CCE, Raipur reported in 2001 (129) E.L.T. 459, wherein it was held that credit during the period prior to amendment of Rule 57G w.e.f. 29-6-1995 not deniable even if credit taken 3-4 years after issue of duty paying documents, that same view has been taken by the Tribunal in the case of Tamilnadu Petro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as and when the inputs were received, it was not correct for him to avail the credit for the entire quantity in July, 2003, that this judgment of the Tribunal is squarely applicable to the facts of this case and in this case the Tribunal had held that in view of the phrase "immediately on receipt of the inputs" used in the Cenvat Credit Rules, the credit must be taken after receipt of the inputs without any delay and that in view of this, there is no infirmity in the impugned order. 5. Shri B.L. Narsimhan, Advocate, ld. Counsel for the appellant in rejoinder pleaded that the judgment of the Tribunal in the case of J.V. Strips Ltd. (supra) relied upon by the learned DR is a Single Bench judgment, that during the period 2002-2006, on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue was finally resolved in favour of the appellant only by the Apex Court's judgment in the case of Vikram Cement (supra). The point of dispute is as to whether the Cenvat credit can be denied if an assessee does not avail the Cenvat credit in respect of certain inputs immediately on their receipt. 7. In this regard, sub-rule (1) of Rule 4 of the Cenvat Credit Rules, 2004 reads as under :- "The Cenvat credit in respect of the inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer at the premises of the provider of output services" 7.1 There are similar provisions in Cenvat Credit Rules, 2002 and Central Excise Rules, 1944. 8. From a plain reading of the above provisions, it is clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia Ltd. v. CCE reported in 2001 (129) E.L.T. 459 (Tri. - Delhi) and Tamilnadu Petroproducts Ltd. v. CCE reported in 2003 (160) E.L.T. 199 (Tri. - Chennai). Moreover in this case there was a valid reason also for not taking the credit during April, 2006 to December 2006 period, as the judgments of the Apex Court and the Tribunal on the issue of eligibility for Cenvat credit of the inputs used in the mines were against the appellant and this issue was ultimately decided in the appellant's favour sometimes in 2008. The judgment of the Single Bench of the Tribunal in the case of J.V. Strips Ltd. (supra) is not based on correct interpretation. 10. In view of the above discussion, the impugned order is not sustainable. The same is set asi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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