Deemed credit under Rule 9A(2) is available when a stock declaration is filed on the date goods become dutiable.

Deemed credit was admissible under Rule 9A(2) of the Cenvat Credit Rules, 2002 where the assessee furnished a stock declaration on the date the goods became dutiable. The stock statement of finished goods filed on 1-4-2003 was accepted as the declaration contemplated by Rule 9A(2), and the credit reversal already made related only to inputs in stock. As there was no finding that excess credit had been taken, the case was not governed by Rule 9A(1), which requires duty paying documents. The denial of credit was therefore unsustainable.

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Issues: Whether the assessee was entitled to deemed credit under Rule 9A(2) of the Cenvat Credit Rules, 2002 on the basis of a stock declaration furnished on the date the goods became dutiable, or whether the case fell under Rule 9A(1) requiring production of duty paying documents.

Analysis: The assessee had furnished a stock statement of finished goods on 1-4-2003, the very date on which knitted socks became dutiable. The credit reversal already made related to inputs lying in stock, and there was no finding that credit in excess of the admissible amount had been taken. In these circumstances, the stock statement could be accepted as the declaration contemplated by Rule 9A(2). Once the declaration was furnished on the relevant date, the assessee was covered by Rule 9A(2) and was not governed by Rule 9A(1), which applies where credit depends on duty paying documents.

Conclusion: Deemed credit under Rule 9A(2) was admissible and the denial of credit was unsustainable.

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