2009 (2) TMI 666

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....nder Transitional Provision, instead of deemed credit. To allow one time credit on the opening stock lying as on 1-4-2003, Transitional Provisions were also made under Sub-Rule (2) of Rule 9A of Cenvat Credit Rules, 2002, for those who were unable to produce documents evidencing actual payment of duty of Grey fabrics (Inputs) falling under Chapter 50 to 63 of the first schedule to the Central Excise Tariff Act, 1985, and lying in stock or in process or containing in finished product, lying in the stock as on 31-3-2003, upon making a written declaration of the description, quantity and value of the stock of each of such goods. 3. The appellant had made the declaration on 4-4-03 and 26-5-03, for Colour & Chemical and Grey fabrics (own....

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....s. Instead of taking the credit in the register and debiting same while calculating the duty payable for the month, they had calculated total duty payable, deducted the deemed credit available for the total duty payable and debited only the differential duty in the Cenvat Credit Register. When the department objected to this, they rectified the error by making credit and debit entries in the month of February 2004. Thereafter, the departmental officers advised them to pay interest on the ground that actual duty payment can be said to have taken place only when fresh credit and debit entries were passed on 29-2-2004 and therefore there was a contravention of provisions of Rule 8(3) and to avoid recovery action under Section 11 they had paid ....

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.... day. 6. The learned D.R., on behalf of Revenue submits that the fact remains that duty was not paid on the finished products since no duty debit was made till 29-2-2004 and therefore the order of the Lower Authorities has to be upheld. He relies on the decision of Tribunal in NTB International Ltd. v. C.C.E., Mumbai reported in 2007 (217) E.L.T. 364 (Tri.-Mumbai). 7. I have considered the submissions made by both the sides. I find considerable force in the arguments advanced by Shri Mukund Chouhan, learned C.A., on behalf of the appellants. The appellants have fulfilled all the substantive requirements such as filing of declaration regarding stock of grey fabrics available with them, proper accountal of goods manufactured, ....