TMI Blog2019 (4) TMI 1065X X X X Extracts X X X X X X X X Extracts X X X X ..... closing stock as on 31/01/2007 and the said entry was made on 31/3/2007 as the appellant has started the proportionate availment of Credit at the end of the month in view of the aforesaid board Circular. The learned Adjudicating Authority denied the aforesaid credit and confirmed the demand, without appreciating the fact that the method of taking proportionate credit at the end of the month was true. The appellant has provided the detailed worksheet regarding the availment of the credit certified by the Chartered Accountant which was not accepted by the Adjudicating Authority. In this case, we are of the view that Chartered Accountant certificate cannot be disagreed without any valid reasons. The acceptance of CA Certificate has been up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat they have followed different procedures as prescribed by the boards from time to time and since they have made reversal as required in respect of exempted clearance, they are entitled to credit in respect of stock lying on 31.03.2006. 2. It is the case of the Department that since they have cleared the consignment availing full exemption under Notification No. 30/2004-CE, they are not entitled to avail Cenvat credit in respect of stock lying on 31.03.2006. 3. Ld. advocate on behalf of the appellants submits that the Ld. adjudicating authority has failed to appreciate the fact that till 31.03.2006, they were availing simultaneously the benefit under Notification No. 29/2004 and 30/2004. The appellant was working under the methods o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Accountant has not been properly explained to the Adjudicating Authority, and therefore, he has confirmed the demand. 5. Heard parties and perused the appeal records. 6. The issue involved in this case is regarding the availment of Cenvat Credit by the appellant on the inputs used by them in the manufacture of finished goods under Notification No. 29/2004 dated 9th July, 2004 and 30/2004 dated 9th July 2004. The appellant is engaged in the manufacture of cotton yarn out of the raw-material that is cotton wool. As per Notification No. 29/2004, textile products made of 100 % cotton require to pay concessional rate of duty at 4 % and other goods at the rate of 8 % without any restrictions regarding the availment of Cenvat Credit of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down in the Notifications referred above. The appellant changed the methodology for reversal of Cenvat Credit with effect from 1/04/2006 to the extent that they started availing the Cenvat Credit on whole of the amount of duty paid on all the inputs and subsequently reversing the proportionate credit used in the manufacture of goods cleared under Notification 30/2004-CE. Subsequently, CBEC, vide Circular No 845/3/07-CX dated 1/02/2007 clarified that any case whether the manufactures is working under both the Notifications No. 29/2004 and 30/2004, he shall avail the proportionate credit at the end of month in respect of inputs used in the manufacture of goods cleared under Notification under 29/2004. Following the said clarification the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actory as on 31/3/2006 (b) Reversal of credit in relation to stock lying in the factory as on 31/1/2007. 7. Both these entries were made on the given date i.e. on 31/3/2007 with respect to stock lying in the factory for two different dates due to changed methodology of taking/availment of credit, which was not appreciating by the learned Adjudicating Authority. This fact was reflected in ER-1 Return submitted to the jurisdictional Central Excise Authority. It was also suggested that the Commissioner s disagreement while adjudicating the case regarding the proportionate credit the reversal authority be illegal and is not in accordance with the CBEC Circular which endorse that. Further, the Adjudicating Authority assertion that the cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above provisions, it is clear that what the Rules prescribes is that a manufacturer can avail cenvat credit in respect of certain inputs immediately on their receipt and there is no time limit period prescribed in these rules in this regard. The word mayin sub-rule of Rule 4 cannot be read as shall. The Departments contention would have been correct if sub-rule (1) of Rule 4 had provided that cenvat credit in respect of inputs shallbe taken immediately on receipt of the inputs. We, therefore, agree with para 10 of the Boards Circular No.345/2/2000TRU dated 29.08.2000 in this regard which is reproduced below:- 10. Rule 57 AC provides that cenvat credit may be taken immediately on receipt of the inputs in the factory. Some apprehensi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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