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Spl Ltd, Shri Shankaran Iyer, Sr. Manager, Shri RK Lakhotia, General Manager Versus Commissioner of Central Excise, Rohtak

2015 (10) TMI 1556 - CESTAT NEW DELHI

Denial of CENVAT Credit - Whether a manufacturer is required to reverse the cenvat credit taken by him in respect of the inputs which are proved to have been used in manufacture of the goods which are liable to concessional rate of duty - Held that:- In view of the Notification no.60/2003-CE dated 29.07.03, which provides that no credit taken in respect of the inputs which are used in manufacture of the final products on which benefit of concessional rate of duty has been availed by the appellan .....

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duty, therefore, on the day for opting for exemption, whatever input/ inputs contained in work-in-progress and final product, the appellant is required to reverse the cenvat credit. - at the time when appellant took cenvat credit on inputs, their final product was dutiable and later on, they opted for availing benefit of concessional rate of duty as per notification no.50/2003 - appellant is not required to reverse the cenvat credit on inputs, inputs contained in work in progress/finished goods .....

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cellaneous applications for extension of stay. The Appellants viz. SPL Ltd. has also filed an application for change of cause title from SPL Ltd. to M/s. Somany Ceramics Limited. The necessary registration certificate has been obtained by the appellant from Registrar of Companies. 2. As the appellant has obtained necessary certificate for change of name of the cause title, therefore, we allow the application for change of cause title. Now, the appellant shall be known as Somany Ceramics Ltd. ins .....

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No.13/2002-CE (NT) dated 1.3.2002. The appellant claimed concessional rate of duty as per notification no.6/2002-CE dated 1.3.2002 as amended by notification no.45/2003 dated 14.05.2002 as amended by notification no.60/2003-CE dated 29.07.2003 at sl.no.275 for availing exemption w.e.f. 7.8.2003. The Departmental Officers visited the factory of the appellant on 27.08.2003 and found that the appellant has not reversed the cenvat credit availed on inputs lying in stock/inputs contained in the work .....

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st and imposition of penalty on all the appellants. Aggrieved from the said order, the appellant are before us. 4. Ld. Counsel for the appellant submits that the appellants have taken cenvat credit correctly in terms of the Cenvat Credit Rules and when the appellant availed cenvat credit, their product was liable to duty. Later on, in terms of the notification no.60/2003-CE dated 29.07.2003, the appellant sought concessional rate of duty although the notification is conditional one, wherein it h .....

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be set aside. To support this contention, he relied on the decision of the Hon'ble High Court of Himachal Pradesh in the case of CCE, Chandigarh Vs. Saboo Alloys Pvt. Ltd. reported in 2010 (249) ELT 519 (HP) . 5. On the other hand, ld. Authorised Representative supported the impugned order. 6. Heard the parties. Considered the submissions. 7. In this case, short issue before us is that whether a manufacturer is required to reverse the cenvat credit taken by him in respect of the inputs which .....

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), wherein the Hon'ble High Court has observed as under:- 11. It would also be pertinent to mention that the judgment of the Tribunal in Ashok Iron and Steel Fabricators' case has been upheld by the High Court of Rajasthan in Hindustan Zinc Ltd. v. Union of India, 2008 (223)E.L.T. 149 (Raj.) . The High Court held as follows:- "It can be seen from yet another angle. In case inputs are received in factory and used in manufacture of end product. But the end product is destroyed by fire .....

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hargeability to duty or non-chargeability due to exemption or notified nil rate is to be considered at the stage before goods are actually produced, but on receipt of inputs intended to be used in manufacture of such goods. That being so ultimate clearance of goods at nil rate due to contingency existing at the time of removal does not affect the entitlement that legally arises long before that date." 12. We are in respectful agreement with the judgment of the Kerala and Rajasthan High Cour .....

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15 , a similar issue came up before this Tribunal, wherein the appellant were manufacturer of electric bulbs and procuring inputs,capital goods and availing cenvat credit thereon. Thereafter they opted for availing exemption under notification no.50/2003-CE i.e. the area based exemption. Revenue is of the view that as the appellant have opted for exemption from duty, therefore, on the day for opting for exemption, whatever input/ inputs contained in work-in-progress and final product, the appell .....

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actory is required to reverse or not. In the case of Apco Pharma Ltd. (supra), the issue came up before the Hon'ble High Court of Uttarakhand which is the jurisdictional High Court wherein the Hon'ble High Court has observed as under:- "Upon hearing the ld. Counsel for the parties, the Court is of the view that the scheme of Cenvat Credit Rules makes it apparently clear, especially rule 4, that Cenvat Credit in respect of inputs is required to be taken immediately on receipt of the .....

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