2004 (8) TMI 553

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.... pleaded that M/s. Jyoti Cement Spun Pipe Works, Bijapur are manufacturers of articles of cement falling under chapter heading 6807. They opted out of Modvat Scheme from 1-4-97 and filed declaration of stock of inputs cement and steel lying in balance and also of the stock of inputs contained in the final products. They paid duty on the stock of inputs physically in balance and did not pay duty on inputs contained in the final products lying in stock as on 1-4-97. Show cause notice was issued to them for recovery of Rs. 1,65,390/- under Rule 57H(7) of the Central Excise Rules. The duty demand was confirmed by the Deputy Commissioner and the Commissioner (Appeals) upheld the order of the Deputy Commissioner. 4. Similarly, Shri Geetha....

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....thereof. It is entitled to use the credit at any time thereafter when making payment of excise duty on the excisable product. There is no provision in the Rule which provides for a reversal of credit by the excise authorities except where it has been illegally or irregularly taken, in which event it stands cancelled or, if, utilised, has to be paid for." He also relied on the following decisions - (i)      Raghuvar (India) Ltd. v. Commissioner of Central Excise, Delhi - 2002 (140) E.L.T. 280 (Tri. - L.B.) wherein it was held that Credit taken and utilised at a time when final product was dutiable, subsequent exemption of final product not a reason for reversal of credit. (ii)     Barauni....

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....on from the whole of the duty of excise leviable on goods manufactured by him under a notification based on the value or quantity of clearances in a financial year, and who has been availing of the credit of the duty paid on inputs before such option is exercised, shall be required to pay an amount equivalent to the credit, if any, allowed to him in respect of inputs lying in stock or used in any finished excisable goods lying in stock on the date when such option is exercised and after deducting the said amount from the balance, if any, lying in his credit, the balance, if any, still remaining shall lapse and shall not be allowed to be utilised for payment of duty on any excisable goods, whether cleared for home consumption or for export".....