2004 (1) TMI 616

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Shri H.C. Verma, JDR, for the Respondent. [Order]. -  The appellants were working as a Small Scale Industrial Unit till 31-3-2000. From 1-4-2000, they opted for not availing SSI exemption and started paying duty on their final products. There was some stock of inputs as on 1-4-2000, which they used in the manufacture of final products, which were cleared on payment of duty. Modvat credi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....limit of Rs. 100 lakhs is admissible or not. In this context, it is clarified that when the SSI unit clears the goods at nil rate or 5% rate up to an aggregate clearance of Rs. 100 lakhs, it is on the condition that no CENVAT credit is taken on the inputs used in such goods. Once the limit of Rs. 100 lakhs is over and the unit starts paying full duty, the CENVAT credit is admissible. In the CENVAT....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....duty credit and clarifies as under :- 'It has also been reported that in some cases the inputs were received in the factory on or before 31-3-2000 but credit was not taken for some reason. It is clarified that in the situations mentioned, even though the Modvat credit was not taken by the manufacturer, the Modvat credit had been "earned" by the manufacturer and, therefore, the manufacturer is e....