2009 (2) TMI 685

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y have undertook expansion and became eligible for the benefit of the said exemption w.e.f. 9-4-2004. This issue whether they achieved substantiated expansion or not was in dispute and same reportedly have been decided in favour of the appellant by the order of the Commissioner (Appeals) and Department has not filed any appeal against the same. While they opted for the benefit of Notification No. 50/2003, it is claimed that they reversed the credit attributable to inputs lying as such and inputs used in the goods under process as well as inputs contained in the finished goods which are lying in stock totally amounting to Rs. 4,78,260/-. Subsequently, they claimed refund of the said amount stating that they have taken the credit validly and ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....elied upon by him are not applicable to the facts of the present case. He also submits that the appellant has on their own reversed the credit in respect of inputs lying in stock as such and those contained in final products in process and finished goods and there is no provision for refunding in cash of the Cenvat credit except in cases of credit attributable to exported final product. He also submits that refund even if it is held as admissible it is considered in the light of provisions relating to unjust enrichment. 6. I have carefully considered the submissions from both sides. The submission of the learned Advocate is that the credit was taken when the final goods were dutiable and, therefore, the credit taken was legal. Simil....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ingency that may arise in future, the end product is cleared without payment of duty due to exemption or nil rate of duty does not affect the availing of Modvat credit on the date of entitlement. If on the date of entitlement, there is no illegality or invalidity in taking credit of such Modvat/Cenvat credit, the right to utilize such credit against future liability towards duty become indefeasible and it is not liable to be reversed in the contingency discussed above." 20. On the Rule 6 of Rules 2002 and the corresponding Rules, as mentioned perusal of above, we are of the view that the Appellants had correctly taken the credit and utilized, when the final product was dutiable and there is no requirement to reverse the credit on fi....