One-time credit rule bars both deemed and actual Cenvat credit on the same inputs, preventing double benefit.

Exemption notifications and the Cenvat scheme were construed as allowing only one credit on the same inputs. Paragraph 4 barred a manufacturer from availing credit in respect of those inputs, subject to a limited exception for capital goods. Because the assessee first took deemed credit on the fabrics and then claimed actual duty credit on the same fabrics, the arrangement amounted to double benefit on the same goods. Such simultaneous or successive availment of deemed and actual credit on identical inputs was impermissible under the notification scheme and the Cenvat rules.

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Issues: Whether an assessee could avail deemed credit under the exemption notifications and also claim actual Cenvat credit on the same inputs, thereby taking double credit on the same goods.

Analysis: The notifications were read as permitting only one-time credit on inputs. Their paragraph 4 excluded a manufacturer who availed credit in respect of the said inputs, while the explanation preserved a limited exception for capital goods. On the facts, the assessee had already taken deemed credit on the fabrics and thereafter claimed actual duty credit on the same fabrics. The two-stage availment resulted in double benefit on the same inputs, which was not permissible under the scheme of the notifications and the Cenvat rules.

Conclusion: Double credit on the same inputs could not be availed. The question was answered in the affirmative and in favour of the Revenue.

Final Conclusion: The Tribunal's view was set aside and the departmental appeal succeeded on the core issue of impermissible simultaneous availment of deemed and actual credit on the same inputs.

Ratio Decidendi: Where a notification and the Cenvat scheme permit only one credit on inputs, an assessee cannot first avail deemed credit and thereafter claim actual credit on the same goods; such dual availment amounts to impermissible double benefit.

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