TMI Blog2018 (11) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants are very much entitled for availing credit of the same and it will not make any difference whether the goods have been procured from a unit which is based in area-based exemption or otherwise. Provisions of Rule 12 of Cenvat Credit Rules, 2004 allow the benefit of Cenvat credit to the down-stream buyers of the inputs inspite of the facts that the manufacturer based in Area Based Exemption Notification will be entitled for a refund of part of duty paid by him on such clearances - Commissioner (Appeals) has wrongly interpreted the provision of Rule 12 of Cenvat Credit Rules, 2004 and Rule 12 does not debar the down-stream buyers of the inputs cleared from the area based exemption from availing the Cenvat credit of the duty which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002. The benefit of exemption under the said notification was available to M/s Ritzy Polymers for a period of ten years from the date of commencement of production, i.e. upto 05.09.2014 and there is no dispute regarding this factual position. 2. On the issue of Notification No.01/2010-CE dated 06.02.2010 by the Central Government, M/s Ritzy Polymers undertook substantial expansion, as required under the said notification and requested the department for the benefit of exemption under Notification No.01/2010-CE. Learned Deputy Commissioner, Central Excise, Jammu, vide Order-in-Original No.04/DE/CE/I/Expn/04/2012 dated 18.06.2012 accepted the request of M/s Ritzy Polymers and allowed exemption under Notification No.01/2010-CE w.e.f. 01.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... get any relief from there and now they are before us against the impugned Order-in-Appeal dated 26.03.2018. 4. It has been contended by Ld. Advocate appearing on behalf of the appellants that it is a matter of record that they have purchased their raw materials on payment of Cenvat Excise Duty and since the inputs were duty paid, the appellants have rightly availed Cenvat Credit as per the provisions of Rule 3 of the Cenvat Credit Rules, 2004. It has also been added that in spite of the fact that Notification No.1/2010-CE dated 06.02.2010 does not find mention under Rule 12 of the Cenvat Credit Rules however, since the Notification No.56/2002 was still available to the supplier of their raw material as the date of expiry of entitlement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f M/s Ritzy Polymers and granted the refunds treating the clearances made till August, 2014. Under Notification No.56/2002, In total eight refunds have been passed wherein various refund amounts have been allowed to the supplier. It has also been added that the department has not filed any appeal/review order against the refund orders of Deputy Commissioner, Jammu. The ld Advocate has also contended that demand is purely hit by period of limitation as all the facts have been known to the department and the appellants have never indulged in any suppression of facts, mis-declaration or fraud with an intention to evade duty. Therefore, the extended time proviso for asking reversal of Cenvat credit beyond normal period under Section 14 is not i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturer of such duty paid inputs and find a use in the manufacture appellants final products. The provisions of Rule 3 of Cenvat Credit Rules, 2004 have no ambiguity on this aspect. in our view once the duty has been paid on the legitimately purchased inputs, the appellants are very much entitled for availing credit of the same and it will not make any difference whether the goods have been procured from a unit which is based in area-based exemption or otherwise. 10. We also find that the Rule 12 of Cenvat Credit Rules provide that notwithstanding anything contained in these rules, [but subject to the proviso to clause (i) of sub-rule (1) of Rule 3] where a manufacturer has cleared any inputs or capital goods, in terms of Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been effected under Notification No.56/2002 which has a definite mention under Rule 12 of the Cenvat Credit Rules, 2004 and, therefore, the basic ground of the department that clearances were under Notification No.1/2010 dated 06.02.2010 gets defeated and we find no cause of action for the Jurisdictional Commissioner of the appellant to deny any Cenvat credit to them. 13. We are also in agreement with the ld Advocate that there is no ground of invoking extended time proviso under Rule 14 of Cenvat Credit Rules, 2004 as necessary ingredients for invoking extended period of demand are not present in their case and thus, we also find that demand is barred by period of limitation. 14. In view of above, we do not find any merit in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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