TaxTMI 
TaxTMI 
2010 (8) TMI 789
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....f the Cenvat Credit Rules, 2002. On pointing out the respondents paid the duty demand along with interest through TR-6 Challan under protest. After realizing that they are not required to pay the duty, in view of the Notification No. 18/2003-C.E. (N.T.), dated 13-3-2003 amending Rule 3 ibid, they filed a refund claim of Rs. 5,73,568/- The adjudicating authority rejected the entire claim but permitted to the respondent to restore the credit of Rs. 2,89,284/- in the Cenvat account which was debited on 5-7-2003. The respondent filed an appeal before the Commissioner (Appeals) and the Commissioner (Appeals) allowed the appeal of the respondent with the following observations :- "The issue involved in the present case is whether duty of Rs. 2,89,284/- paid on 8-7-2004 along with interest of Rs. 2,84,284/- by the appellants were refundable to them under the law. The appellants strongly rely upon the amendment in Rule 3 of Cenvat Credit Rule, 2002 vide Notification No. 18/2003 C.E. (N.T.) dated 13-3-2003. Prior to 18-3-2003, the manufacturer was allowed to discharge duty liability for the month through cenvat account, only to the extent of credit available at the end of that month in t....
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....hence, the appellant were entitled for refund of interest already paid. Therefore impugned order rejecting the claim of interest of Rs. 2,84,284/- paid by the appellants cannot be sustained and it is liable to be set aside. As result of this appeal. I allow the appellants to take credit of Rs. 2,89,284/- either in Personal Ledger Account or in Cenvat Account. However, consequent to this order, the appellants shall inform to the jurisdictional Assistant/Deputy Commissioner what option they are exercising. I also direct the lower authority to refund an amount of Rs. 2,84,284/- paid towards interest to the appellants after examining relevant payment challans and any other details, if any". Aggrieved from the same, the Revenue is before me. 4. Shri S.S. Katiyar, the learned SDR submitted that as per Notification No. 13/2003-C.E. (N.T.), dated 1-3-2003 there was an amendment in Cenvat Credit Rule 3(3). As per that amendment a new proviso was inserted w.e.f. 1-4-2003 replacing the earlier proviso. On 13-3-2003, vide Notification No. 18/03-C.E. (N.T.) the whole sub-rule (3) of Rule 3 ibid was substituted by the new Rule 3(3) ibid which was also to be effective from 1st Day of April ....
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....the proviso to sub-rule (3) of Rule 3 ibid which is reproduced here as under :- "provided that while paying duty, the CENVAT credit shall be utilized only to the extent such credit is available on the last day of the month for payment of duty relating to the month". was not in the statue book of the Cenvat Credit Rules, 2002 which were effective from 1-4-2003. Hence, I do not find that the respondent has committed any error in availing the Cenvat credit as observed Commissioner (Appeals) in the impugned order. 10. Accordingly, I do not find any force in the arguments of the learned DR. Hence, the appeal filed by the Revenue is rejected, the impugned order is upheld. Cross-objections are also disposed of in the above manner. (Pronounced in court on 2-8-2010) ANNEXURE "1" "manufacture of final products whether directly or indirectly and whether contained in the final product or not, and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used for manufacture of final products or for any oth....
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....57 of the Finance Act, 2003 (32 of 2003),] paid on any inputs or capital goods received in the factory on or after the first day of March, 2002, including the said duties paid on any inputs used in the manufacture of intermediate products, by a job-worker availing the benefit of exemption specified in the notification of the Government of India in, the Ministry of Finance (Department of Revenue), No. 214/86-Central Excise, dated the 25th March, 1986, published vide number G.S.R. 547(E), dated the 25th March, 1986, and received by the manufacturer for use in, or in relation to, the manufacture of final products, on or after the first day of March, 2002. Explanation. - For the removal of doubts it is clarified that the manufacturer of the final products shall be allowed CENVAT credit of additional duty leviable under section 3 of the Customs Tariff Act on goods falling under heading 98.01 of the First Schedule to the Customs Tariff Act. (2) Notwithstanding anything contained in sub-rule (1), the manufacturer or producer of final products shall be allowed to take CENVAT credit of the duty paid on inputs lying in stock or in process or inputs contained in the final produc....