9911796707
TMI Blog2010 (10) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... d deemed credit of Rs. 8,40,720/- in terms of Rule 5 of Cenvat Credit Rules, 2001 read with para 3 of Notification No. 53/2001-C.E. (N.T.) dated 26-6-2001 issued under Rule 11 of Central Excise Rules, 2001, in respect of the goods cleared under invoices against Annexure-I issued by the Assistant Commissioner, Div. III, Ahd-I to the manufacturers and exporters of the made up articles during the period July 2001 to September 2001 on the ground that the said credit can not be utilized for payment of duty for home consumption or for export on payment of duty. The said refund claim was rejected vide O-I-O No. 121/2002/DC/Ref., dated 5-8-2002 on the ground that the credit of specified duty can only be allowed in respect of inputs used in the fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e department's appeal (which was also accepted by the department) on the ground that the Commissioner (Appeals) has failed to appreciate that the appellant has not fulfilled the condition 4 & 5 of the Appendix to Notification No. 11/2002-C.E. (N.T.), dated 1-3-2002 in as much as they have not submitted bill of lading/shipping bill or export application duly certified by any officer of the Customs to the effect that the goods have in fact been exported and the proof of due exportation being statutory requirement. Also certificate regarding non-claiming of duty drawback not submitted. Commissioner (Appeals) has also erred in not giving any findings in respect of the excess availment of deemed credit of Rs. 1,66,284/- as mentioned in the O-I-O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposed penalty of Rs. 10,000/-. 6. Being aggrieved with the above order, appellant filed an appeal before Commissioner (Appeals) who framed the issues as under : "(i) Whether the deemed credit amount taken by the appellant in their Cenvat credit account register during March, 2007 i.e. after the deemed credit scheme is rescinded vide Not. 8/2003-C.E. (N.T.), dated 1-3-2003. (ii) Whether the deemed credit amount shall lapse after the scheme rescinded?" 7. He accordingly held as under : "I find that the appellant was availing deemed credit Cenvat scheme as per Notification No. 53/2001-C.E., (N.T.), dated 26-6-2001. The appellant had applied for refund of deemed credit accumulated balance in the deemed cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 2002 (inserted this rule vide Notification No. 40/2003-C.E., (N.T.), dated 30-4-2003). The input duty credit amount lying in balance was always allowed to be transferred in the new scheme whenever made applicable such as modvat credit to Cenvat credit scheme 2002 & Cenvat Credit 2004. In the present case also, as per Board's Circular B-3/5/2003-TRU dated 30-4-2003 has clarified in para 3.4 wherein the input stock as on 31-3-2003 was allowed one time credit under rule 9A of Cenvat Credit Rules, 2002. Similarly the deemed credit balance at the time of rescinding the scheme is allowed to be entered in the Cenvat credit account. Therefore seeking for duty paying documents as per rule 11 of Cenvat Credit Rules, 2004 is o more relevant in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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