TaxTMI 
TaxTMI 
2010 (5) TMI 413
X X X X Extracts X X X X
X X X X Extracts X X X X
....and 8429.00 of Central Excise Tariff. The Appellants were also availing SSI exemption under Notification No. 8/2001 dated 1-30-2001 and were also availing the Cenvat credit facility. Under Notification No. 8/2001- C.E., the Appellants were eligible for full duty exemption in respect of their first clearances of specified goods upto the value of Rs. one crore starting from 1st April and the clearances in excess of Rs. one crore were chargeable to Central Excise Duty at normal rate. However, as per the condition 2(iii) of the exemption notification, during the period when they were availing full duty exemption, they could not avail Cenvat credit of duty on inputs under Rule 3 or Rule 11 of Cenvat Credit Rules, 2001, of the duty paid on inputs....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... which the Cenvat credit demand was confirmed alongwith interest and penalty of equal amount was imposed on the Appellant under Rule 13 of Cenvat Credit Rules, 2001, read with Section 11AC of Central Excise Act. On appeal to Commissioner (Appeals), their appeal was dismissed by the Commissioner (Appeals) vide order in-appeal No. 43-CE/DLH/2005 dt., 24-2-05. It is against this order of the Commissioner (Appeals) that the present appeal has been filed. 2. Heard both sides. 2.1 Ms. Seema Jam, Advocate, learned Counsel for the Appellant, pleaded that during the period of dispute, the Appellant had option either to avail the SSI exemption under Notification No. 8/2001-C.E. and avail full duty exemption on clearances worth Rs. one crore fro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ls)'s findings, emphasized that when the Appellant during 2001-2002 period were availing SSI exemption under Notification No. 8/01-C.E. and they had crossed Rs. one crore limit only on 20-9-01 and till 20-9-01, they were availing full duty exemption, they could not avail Cenvat credit in respect of inputs received for manufacture of specified goods. 3. We have carefully considered the submissions from both the sides and perused the records. During 2001-2002, the Appellants were availing SSI ex emption under Notification No. 8/01-CE under which they could avail duty ex emption in respect of their first Rs. one crore clearances starting from 1st April, subject to condition that while availing full duty exemption, they do not avail input du....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vailing full duty exemption, the finished product being fully exempt from duty, the Appellants were not eligible for input duty credit. In view of this, we hold that the credit of Rs. 2,13,772/- has been wrongly taken by the Appellants which would be recoverable from them alongwith interest as per the provisions of Cenvat Credit Rules. The judgment of the Tribunal in the case of Taj Forgings Pvt. Ltd. v. CCE, Delhi, reported in 2004 (177) E.L.T. 385 (Tri.-Del) cited by the Appellant, which is a single Bench judgent, does not consider as to how input duty Cenvat credit would be available to the Assessee during the period when the Assessee was availing full duty ex emption under SSI exemption notification, while as per the provisions of Rule ....