2007 (1) TMI 457

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....on No. 47/2003 dated 17-5-2003. According to the Revenue, the assessees were entitled to deemed credit only to the extent of Rs. 31,501/- under the provisions of Rule 9A(3)(b) (ii) of the Cenvat Credit Rules, 2002, as the finished goods lying in stock were readymade garments falling under Chapter 62 of the Schedule to CETA, 1985, which were not specified goods under the Notification above named, and had, therefore, availed excess credit of Rs. 96,306/-. 2. Notification No. 35/2003 as amended reads as under : NOTIFICATION UNDER CENVAT RULE 9A Transitional provisions for Textiles and Textile Articles - Amount of credit for specified inputs and finished goods, - In exercise of the powers conferred by sub-rule (3) of Rule 9A of th....

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....value multiplied by 60% of the rate of duty on such unprocessed fabrics. Deemed value multiplied by the rate of duty on such yarn. Declared value multiplied by 12% of the rate of duty on such article of apparel and clothing accessories.]         Explanation 1. - For the purposes of this notification, "Deemed value" shall be calculated in the following manner : Deemed value = Declared value multiplied by 95                         [100 + rate of duty]; + 10 Explanation 2. - For the purposes of this notification, "rate of duty" shall mean the rate of duty leviable under the Central Ex....

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.... the finished goods lying in stock in which the inputs are contained are not specified finished goods, the respondents are not eligible to deemed credit in terms of the above Notification. The case law relied upon by the assessees viz. the Larger Bench decision in CCE v. Entremonde Polyecoaters Ltd. [2000 (122) E.L.T. 700] is distinguishable from the facts of this case, as the issue before the Larger Bench was in the context of eligibility to the benefit of exemption under Notification No. 63/87-C.E., dated 1-3-1987 which was held to be admissible to finished products containing base fabric of cotton, irrespective of the fact that the cotton was not classifiable under Chapter 52 and the notification granted exemption to textile fabrics, imp....