TMI Blog2014 (10) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... 151, 100, 144, 149, 150, 152, 153, 155, 157, 158, 159, 160 and 161 of 2006 - - - Dated:- 13-3-2014 - SRI G. CHANDRAIAH AND SRI CHALLA KODANDA RAM, JJ. For the Appellant : Sri Jalakam Sathyaram, Standing Counsel For the Respondent : Sri S. Arun Kumar and Sri Anandhan Ram COMMON JUDGMENT:- (per Honble Sri Justice Challa Kodanda Ram) Inasmuch as the issue involved in this batch of thirteen Central Excise Appeals is one and the same, these matters are taken up together for disposal by this Common Judgment. Since the facts in all the cases are identical, for the sake of convenience, the facts enumerated in C.E.A.No.151 of 2006 are referred to. These appeals filed under Section 35(G) of the Central Excise Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hort the Rules). They had credited the same to their account under RG 23A Part-I and Part-II. Necessary credit entries were made in RC 23A Part-II. On account of exemption from duty on issuance of Notification No.19/91, show cause notices were issued by the Assistant Commissioner as to why; a) the credit of duty taken in respect of quantity of 3,493 numbers of empty metal containers held by them as on 25.07.1991 should not be reversed in RG 23A Part-II or paid in cash as the case may be in terms of Rule 57(I) of Central Excise Rules. b) The credit of duty was taken in respect of quantity of 66,680 numbers of cans. After show cause notices were replied by the assessees and elaborate enquiry was cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that the Tribunal ought not to have ignored the order of the Delhi Tribunal in M/s.Albert David case (3rd cited supra) inasmuch as the same is rendered considering both Ashok Iron case and Dai Ichi case (4th cited supra). He has further urged that in view of Rule 57(C)(1) of the Rules, once the final product is exempted from duty, the manufacturer is disentitled to utilize the MODVAT / CENVAT credit. He has also submitted that the objective behind the whole scheme of CENVAT credit is to reduce the cascading effect of taxation and make the product cheaper to the consumer, as such, the Tribunal committed grievous error in ignoring the order of the Delhi Tribunal and pointed out that SLP against the order of the Tribunal in M/s.Alb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learly provides that Cenvat credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods. Rule 57AH contains the provision for the recovery of Cenvat credit utilized wrongly. In that view of the matter, the decision rendered in M/s.Albert David case, does not support the case of the appellants in any manner. We notice that various High Courts have approved the decision of the Larger Bench in Ashok Iron case: 1) C.C.E vs. Premier Tyres Ltd. 2) TAFE Limited (Tractor Division) vs. C.C.E. 3) Hindustan Zinc Ltd. vs. C.C.E. 4) C.C.E. vs. CNC Commercial Ltd. 5) C.C.E. vs. Apco Pharma Ltd. 6) Ranbaxy Laboratories Ltd. vs. C.C.E. and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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