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2013 (11) TMI 742

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.... finished goods, lying in stock as on 01.04.2003. Rule 9A of CENVAT Credit Rules 2002 was further amended so as to extend the relevant date for filling input stock declaration from 31-3-2003 to 1-4-2003. Consequently, stock of inputs lying as on 1-4-2003 (instead of 31.03.2003) was made eligible for one time credit under Rule 9A of the CENVAT Credit Rules 2002. Notification No. 40/2003-C.E. (N.T.), dated 30-4-2003 amended from time to time refers. The Appellant was required to make declarations of the stock so lying as on 31.3.2003/01-04-2003. Time limit for filing such declaration was extended from time to time and last date for filling such declaration was extended upto 15.6.2003. The Appellant has claimed to have filed its declaration, as prescribed for its stock as on 31-03-2003, vide its declarations dated 23-5-2003, 13-6-2003 and 13-06-2003 received in department on 16-6-2003 claiming such total one time credit worth Rs. 17,75,995/-. 4. The appellant was issued a show cause notice dated 29-03-2004 proposing to disallow such transitional Cenvat Credit of Rs. 17,75,995/- The notice was adjudicated vide Order-in-Original dated 31-01-2006 confirming demand and imposing penalties....

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....ave been with cover of duty paying documents and they would have been eligible for actual duty paid as credit, which would be more than the credit taken u/r 9A ibid. Appellant produced copies of following documents in support of their case :- (i) Grey Register containing Sr. No. from 1026 to 1297 showing receipt of Gray fabrics, L.R. No & Date, Qtty & value, Party's name, Date of issue for process, Qtty issued with Lot No. etc. (ii) Register containing Sr. No. from 1026 to 1297 showing receipt of Gray fabrics, L.R. No & Date, Qtty & value, Party's name, Date of issue for process, Qtty issued with Lot No. and Qtty, value, duty paid on clearance of fabrics etc. [The extract is also produced shows that as against Qtty received, credit of Rs. 17,75,992/- taken, appellant has processed the same and cleared on duty payment of Rs. 27,67.235/-] (iii) Form-IV Register showing receipt and clearance of goods. (iv) Copy of letter dt. 01-07-2004 by Appellant to the Supdt of Excise Range Office showing reversal of credit of Rs. 2,00,071/- from their Cenvat Credit Account vide debit Entry No. 1705 dated 01-07-2004 [RG 23A-Part-II], on noticing clerical errors in taking cenvat credit on duplic....

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....rers on 31.03.2003/01.04.2003. 09. CBEC Circular No. 703/19/2003-CX, dated 25-03-2003 and the Press Note released by Govt, revealed that the Union Budget 2003, a special thrust was given for rationalization of excise duties of textile sector. The proposals involved lowering excise duty rates, completion of CENVAT credit chain, replacement of credit on deemed basis by actual and above Rule 9A of the Cenvat Credit Rules 2002 was introduced as one time option. It is clear that Govt. had allowed one time credit on the stock of inputs, contained in the semi-finished goods and in the finished product, lying as on 1-4-2003 has been extended to certain yarns and knitted or crocheted articles of apparel or clothing accessories. The Government of India also visualized possibilities that some of the manufacturers or traders who had filed their declaration of stock prior to 14-5-2003 have not declared the stock of the above mentioned items, for the reasons that they were not covered under Rule 9A or notifications issued. Such manufacturers were also allowed to file additional declaration declaring the stock of the above mentioned items and claim onetime credit thereon provided such declaratio....

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....e duty totally of Rs.27,67.235/-. Therefore, the appellant qualifies and satisfied the Government of India's scheme and has kept the records of production, clearance, particulars of receipt of inputs processed it and paid the applicable excise duty on clearance of their final products. Further, the revenue has nowhere objected or contended that the inputs in question were not received in the factory, except saying inputs were received in factory after 01-04-2003. It is not the case of revenue that inputs were not used in production or not cleared on payment of duty on final products removal after 01-04-2003. Registers produced containing Sr. No. from 1026 to 1297 shows receipt of Grey fabrics, L.R. No & Date, Qtty & value, Partys name, Date of issue for process, Qtty issued with Lot No. and Qtty, value, duty paid on clearance of fabrics etc. are based on facts supported by evidences, which have not been disputed by the revenue. The stock of 31-03-2003 can only be used for production thereafter and when used for production after 01-04-2003, it cannot conclusively prove that the stock of such input itself was received after 01-04-2003. It is quite possible that stock received on 31-....