Duplicate deemed credit on the same textile inputs is impermissible when credit was already taken by the supplier.

A textile-sector CENVAT transition scheme allowed deemed credit on eligible stock, work-in-progress and finished goods only subject to prescribed conditions and supporting documents. Credit was rejected where the same inputs had already been credited in the hands of the supplier, because the scheme did not permit a second or duplicate availment on identical inputs merely because the goods moved through different stages of processing or different hands. The denial of credit was therefore upheld.

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Issues: Whether deemed credit could be claimed again by the recipient on the same inputs when the supplier of the semi-finished goods had already availed credit, in the context of the textile sector transition to the CENVAT scheme under the relevant notification.

Analysis: The credit scheme introduced for textiles from 1-4-2003 permitted credit on eligible stock, work-in-progress and finished goods subject to prescribed conditions and supporting documents. The factual finding, recorded by both lower authorities, was that credit had already been taken by the suppliers on the very same raw materials and that the appellants were seeking the benefit once more on the same set of inputs. Such repetition of credit on identical inputs was held to be impermissible, as the scheme did not contemplate multiple credit on the same goods.

Conclusion: The claim for deemed credit was rejected as a second availment on the same inputs and was not allowable.

Final Conclusion: The denial of credit was upheld and the appeals failed.

Ratio Decidendi: A credit scheme does not permit repeated or duplicate availment of credit on the same inputs merely because the goods move through different stages of processing or different hands.

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