Cenvat credit on pre-existing stock denied where inputs were not received in factory after 1 April 2000

Cenvat credit on glass bottles and other inputs was held inadmissible where the goods were already lying in stock on 1 April 2000. The relevant notification, effective from 31 March 2000, allowed credit only for inputs or capital goods received in the factory on or after 1 April 2000 and did not extend credit retrospectively to stock already in hand. Applying the earlier identical ruling, the Tribunal treated receipt of inputs after 1 April 2000 as the governing condition for admissibility and denied credit on pre-existing stock.

---

---

Issues: Whether Cenvat credit was admissible on glass bottles and other inputs lying in stock on 1-4-2000 when the benefit of Cenvat credit for aerated waters was extended with effect from that date.

Analysis: The notification effective from 31-3-2000 permitted Cenvat credit only in respect of inputs or capital goods received in the factory on or after 1-4-2000. It did not grant retrospective credit for inputs already lying in stock. Applying the earlier decision on the identical question, the Tribunal held that the restriction on receipt of inputs in the factory after 1-4-2000 governed admissibility and the credit could not be availed for stock already in hand on that date.

Conclusion: Cenvat credit on the glass bottles and other inputs lying in stock on 1-4-2000 was not admissible, and the appeal failed.

---