Transitional Cenvat credit on declared stock cannot be denied for absence of separate final intimation when declarations were timely filed.

Transitional Cenvat credit on inputs lying in stock as on 31.03.2003 was allowable where the assessee filed stock declarations within the extended time and satisfied the substantive conditions for availing credit. The later declaration dated 29.04.2003 was treated as the operative stock declaration, and credit could not be denied merely because no separate final intimation was filed identifying it as such. The denial of credit was therefore not sustainable, and the assessee was entitled to the credit claimed on the declared stock.

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Issues: Whether the assessee was entitled to avail Cenvat credit on inputs lying in stock as on 31.03.2003 when declarations were filed within the extended time and no separate final intimation was given that the later declaration was to be treated as the operative declaration.

Analysis: The applicable Cenvat Credit Rules permitted credit on stock lying as on 31.03.2003 subject to declaration of such stock and intimation of the intention to avail credit within the prescribed time, which had been extended. The assessee had filed declarations on 07.04.2003 and 29.04.2003, and no further declaration was made. The later declaration was treated as the final declaration for the purpose of credit, and the Revenue ought to have allowed credit at least to the extent of the stock disclosed therein. The issue was already covered by the earlier decision relied upon by the assessee.

Conclusion: The assessee was entitled to the Cenvat credit claimed on the declared stock, and the denial of credit was not sustainable.

Ratio Decidendi: Where the substantive conditions for availing transitional Cenvat credit on stock are satisfied and declarations are filed within the extended period, credit cannot be denied merely for want of a separate final intimation when the later declaration clearly operates as the relevant stock declaration.

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