TaxTMI 
TaxTMI 
2011 (6) TMI 473
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....y the appellants against the order of the adjudicating authority has been dismissed. The Additional Commissioner, Gurgaon by this order dated 17th May, 2005 had disallowed the credit to the tune of Rs. 20,40,713/- to the appellants and had ordered recovery thereof along with interest and had imposed penalty of Rs. 6,00,000/-. 2. The issue involved in the matter is whether the appellants are entitled for the benefit of Rule 9A as it stood on amendment which was introduced on 12th May, 2003 read with Notification No. 28/2003-C.E. (N.T.), dated 1st April, 2003 and Notification No. 43/2003-C.E. (N.T.), dated 12th May, 2003 as well as Notification No. 52/2003-C.E. (N.T.), dated 6th June, 2003. 3. The relevant facts for the decisi....
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....ppellants drawing attention to Rule 9A as was introduced in the Cenvat Credit Rules, 2002 under Notification No. 25/2003-C.E. (N.T.), dated 25th March, 2003 and further amendment to the said Rule under Notification No. 28/2003-C.E. (N.T.), dated 1st April, 2003, Notification No. 43/2003-C.E. (N.T.), dated 12th May, 2003 and Notification No. 52/2003-C.E. (N.T.), dated 6th June, 2003 submitted that the proper reading of the said notifications would disclose that the benefit of Rule 9A having been extended to the product in stock as was available on 31st March, 2003 by amendment brought into force on 12th May, 2003 by filing necessary declaration subsequent to the said date and on or before 15th June, 2003 and the appellants having complied wi....
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....re to be interpreted liberally as such a provision subjected to compliance of the condition is always to be construed strictly and the benefit under Rule 9A cannot be claimed without strict compliance of the condition attached thereto. 5. Rule 9A(1) as was introduced in Cenvat Credit Rules, 2002 under Notification 25/2003-C.E. (N.T.) reads as under : "Rule 9A. Transitional provisions for Textile and Textile Articles. - (1) A manufacturer, producer, first stage dealer or second stage dealer of yarns and unprocessed fabrics falling under Chapter 50,51,52,53,54,55, 58, 59 or 60 of the First Schedule to the Tariff Act or a manufacturer of processed fabrics falling under Chapter 50,51,52,53,54,55, 58, 59 or 60 of the First Schedule to....
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....he credit of duty on inputs contained in the fabrics or garments lying in stock as on 31st day of March, 2003 shall be calculated........." under Notification 20/2003-C.E. (N.T.), dated 1st April, 2003. 8. Perusal of Notification clearly discloses that though Rule 9A was introduced under Notification 25/2003-C.E. (N.T.), dated 25th March, 2003, it essentially related to grant of benefit of Cenvat Credit in relation to duty paid on inputs of the final product found in stock or in process or contained in final product found in stock as on 31st day of March, 2003. The amendment which was introduced to the said Rule under Notification dated 12th May, 2003 merely enlarged scope of applicability of the said benefit under Rule 9A to the pr....
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....ity for availment of such benefit covered under Chapter 62 was undoubtedly extended on 12th May, 2003. The date of availing of such benefit in relation to such product was never changed as it existed before March, 2003. 10. The decision of the Apex Court in the case of Indian Aluminium Company Ltd. (cited supra) and para 7 to which specific attention was drawn is to the effect that even in case of requirement of declaration to avail the benefit of any exemption or otherwise, the condition in that regard has to be strictly complied with by the assessee as the declaration contains necessary proof to justify the claim of benefit and the Department is empowered to verify such claim and availability of evidence in support of such claim. ....
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....s raised by the Department at any point of time. The only contention which was sought to be raised was that the benefit of the amended provisions under Notification dated 12th May, 2003 was not available retrospectively and therefore, the declaration sought to be filed claiming the benefit in terms of the amended provisions was not available. The Commissioner of Central Excise (Appeals) erred in holding that such declaration ought to have been filed before May, 2003 in terms of Notification dated 12th May, 2003, if at all the appellants wanted to file declaration for availing benefit by the amended provisions. 13. It is true that while extending the benefit to the product covered under Chapter 62 under Notification dated 12th May, 2....