Cenvat credit on pre-cutoff excise duty may be taken later where the amended regime and circular permit it.

Cenvat credit of Additional Duty of Excise paid on inputs before 1 March 2003 could be taken after that date under the amended regime, where the governing circular also permitted such utilisation. Denial could not rest on a ground not alleged in the show cause notice, especially where the notice proceeded only on the basis that pre-1 March 2003 duty could not be claimed later. The commentary further notes that an earlier decision in the assessee's own case had already accepted entitlement for a prior period, reinforcing the same treatment for the later period. On that basis, credit, interest and penalty were unsustainable.

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Issues: Whether Cenvat credit of Additional Duty of Excise paid on inputs prior to 1.3.2003 could be availed after 1.3.2003 on the strength of invoices issued by the first stage dealer, and whether denial could be sustained on the basis of the show cause notice and circular restrictions.

Analysis: The claim for credit was examined in the light of the amendment permitting credit on Additional Duty of Excise from 1.3.2003 and the departmental circular clarifying that duty paid before that date could also be utilized thereafter. The objection that the credit was barred because the inputs were covered by supplementary invoices was not supported by the show cause notice, which proceeded on the footing that credit of duty accrued prior to 1.3.2003 could not be taken later. Since the earlier proceedings in the assessee's own case had already accepted entitlement to such credit for a prior period, the same principle governed the present period as well.

Conclusion: The assessee was entitled to take the Cenvat credit and the denial of credit, interest, and penalty was unsustainable.

Final Conclusion: The appeal succeeded and the impugned order was set aside with consequential relief.

Ratio Decidendi: Where credit is otherwise permissible under the amended regime, denial cannot be sustained on a ground not alleged in the show cause notice, and duty paid before the cut-off date may be availed for utilization after the cut-off date when the governing circular so permits.

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