2009 (9) TMI 337

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....spect of Cenvatable input already utilised in terms of Rule 3 (4) of Cenvat Credit Rules, 2004 shall be called back for recovery by Adjudicating Authority, exercising power under Rule 14 of the Cenvat Credit Rules, 2004. 2. Learned Counsel Shri Narsimhan brings out that none of the inputs were questioned to be not Cenvatable. The input that was subject matter of Rule 3 of Cenvat Credit Rules, 2004 entitles the appellant to take credit thereof. In terms of Rule 3(4) of Cenvat Credit Rules, 2004, the appellant has right to utilise the Cenvat credit earned. He therefore submits that when lawful Cenvat credit was earned and such earning, not being questioned, Rule 3(4) readwith Rule 3(1) come into play. If applicability of Rule 3(1) and Rule....

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....o dispute that part of the input had already gone into work-in progress by 8-1-2004. Also there is no dispute that part of the input were within the finished goods itself on the cut-off date i.e. on 8-1-2004. Notification No. 2/2004, dated 8-1-2004 came into force on 9th January 2004 specifying that the goods of the appellant were exempt from payment of duty. When the notification saw light of the day on 9th January 2004 by that time Cenvat credit earned by the appellant was utilised to discharge duty demand. The credit earned conferred right on the appellant to take the same into account in terms of Rule 3(4) of Cenvat Credit Rules, 2004. This is undisputed. Even before the effective date of notification, the Cenvat credit earned by the ap....