TMI Blog2007 (7) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of Rs. 67,793/- availed by the appellant was inadmissible. 2. The appellant was engaged in the manufacture of C.R. Strips, C.R. Sheets and Varnish Coated Strips/Sheets. On scrutiny of ER-1 returns for the month of July, 2003, it was noticed that the appellant had availed Cenvat credit in respect of Ammonia, said to have been received by the appellant during the period from July, 2001 to March, 2003. The whole quantity of Ammonia pertaining to the said period was accounted for in one lot in the month of July, 2003 and Cenvat credit was also availed in that month in the RG-23A, Part-II register. According to the Revenue, Cenvat credit was required to be taken immediately on receipt of inputs in the factory of the manufacturer as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds "immediately on receipt" occurring in Rule 4(1) of the Cenvat Credit Rules, 2002, expressed a time limit within which the manufacturer should do the needful. It was held that, the words "immediately on receipt" were unambiguous and would mean that, the credit should be taken as soon as the inputs were received in the factory of the manufacturer. He considered the Circular issued by the Central Board of Excise Customs (F.No. 345/2/2000-TRU, dated 29-8-2000) and held that, the clarification issued therein conveys that the credit should not be denied even if it is not taken immediately on receipt of inputs. However, the Circular did not spell out any specific time limit for delayed taking of credit. He relied upon the decision of the Supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as soon as the inputs are received in the factory, he will be denied the benefit of Cenvat credit. It is contended that, there was no bar against taking of the credit later and that the credit could be taken even after the period of six months. It is contended that, the Cenvat credit Rules do not stipulate any time limit for availing the Cenvat credit and, therefore, the Commissioner (Appeals) has grossly erred in legislating six months' time limit for availing credit. 6. The learned authorised representative for the Department submitted that, the Circular issued by the Board on 29-8-2000 only clarified that, credit was not to be denied if it is not taken immediately, in the sense within two or four hours or so, and that the idea was t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C laid down the conditions for allowing Cenvat credit and, therefore, the requirement that credit in respect of inputs may be taken immediately on receipt of inputs in the factory of the manufacturer, was a condition for allowing Cenvat Credit. Rule 57A to 57U of the Central Excise Rules, 1944 came to be substituted w.e.f 1-4-2000 by Notification No. 11/2000- C.E., dated 1-3-2000, as modified by Notification No. 27/2000-C.E., dated 31-3-2000. Therefore, the earlier embargo incorporated in sub-rule (5) of Rule 57G that the manufacturer shall not take credit after six months of the date of issue of any of the documents specified in Rule 57G(3) ceased to operate and by virtue of Rule 57AC, a condition came to be imposed for allowing Cenvat cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excludes avoidable delay. 8. Even in the clarificatory Circular dated 29-8-2000, there is no indication that, credit may be taken at any time till the period of six months. On the contrary, it is clarified that, idea underlying the erstwhile Rule 57AC (which corresponds to present Rule 4(1) of the Rules of 2002) was that, if the manufacturer desires, he could take the Cenvat Credit at the earlier opportunity when the inputs are received in the factory. If period of six months is read into the provisions of Rule 4(1), the expression "immediately on receipt of the inputs" occurring into Rule 4(1) will become redundant. 9. For the foregoing reasons, the appellant was not entitled to take Cenvat credit of Rs. 67,793/-. The appeal is, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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