TaxTMI 
TaxTMI 
2010 (4) TMI 1036
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....petition. However, for facilitation, the bare minimum facts that need a necessary mention, have been extracted from Central Excise Appeal No.78 of 2009 titled as Commissioner of Central Excise, Panchkula Versus M/s H.M.T. (T.D.) Ltd., Pinjore. 2. The brief facts, relevant for disposal of the instant appeal emanating from the record, are that respondent assessee M/s H.M.T. (T.D.) Ltd., Pinjore (hereinafter to be referred as "the assessee") was engaged in the manufacturing of agricultural Tractors, Tractor parts and Engines, clearing its goods on payment of appropriate Central Excise duty and was availing Cenvat credit on the inputs used in the manufacture of final products. 3. The revenue claimed that the assessee has wrongly claimed the C....
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....ese Rules, Cess means the Cess levied and collected in terms of Notification No.SO-932(E) dated 28.12.1983 of Department of Heavy Industry issued under Sub-section 9 of the IDRA; that consequently, the levy of Automobile Cess is traceable to Section 9 of IDRA Notification No.SO-932(E) dated 28.12.1983 as reported at 1984 Volume 4 (ECR) Part I Page 26A; and that in terms of the above Notification, the Automobile Cess is levied and collected as duty of excise". 5. In all according to the assessee, that since, it has legally availed the Cenvat credit, so question of imposing penalty or interest did not arise at all. It will not be out of place to mention here that the assessee, stoutly denied all other allegations contained in the show cause ....
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....The revenue did not feel satisfied with the impugned order (Annexure A/4) and filed the present appeal, which was admitted to consider the following questions of law:- "1. Whether Tribunal has erred in law by not appreciating the language of the relevant sub-rule 1 of Rule 6 of CENVAT Credit Rules, 2002, which clearly state that Cenvat Credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods. 2. Whether the Tribunal was correct in ignoring the Hon'ble Supreme Court judgment in the case of M/s Albert David Ltd. vs. CCE Meerut as reported in 2003 (157) ELT A81(SC)?" 10. Assailing the impugned order, learned counsel for the revenue has contended with some amount of vehemence that as per R....
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....ng the position on record, now the core question that arises for determination in this appeal, as to whether Cenvat credit availed by a dealer on such quantity of duty-paid inputs, which is used in the manufacture of subsequently exempted final goods, is liable to be reversed or not? 14. An identical question arose before the Hon'ble Apex Court in Dai Ichi Karkaria's case(supra). Having interpreted the relevant provisions of the scheme, it was ruled that a manufacturer obtains credit for the excise duty paid on raw material to be used by him in the production of an excisable product, immediately it makes the requisite declaration and obtains an acknowledgement thereof. It is entitled to use the credit at any time thereafter, when m....
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....t in SLP (Civil) No.14193 of 2002 filed by the Commissioner of Central Excise, Rajkot vide order dated 11.11..2002. 16. Likewise, in Chandrapur Magnet Wires's case(supra), it was, inter alia, observed by the Hon'ble Apex Court that if the debit entry is permissible to be made, credit entry for the duties paid on the inputs utilised in manufacture of the final exempted product will stand deleted in the accounts of the assessee. In such a situation, it cannot be said that the assessee had taken credit for the duty paid on the inputs utilized in the manufacture of the final exempted product under Rule 57A. In other words, the claim for exemption of duty on the disputed goods cannot be denied on the plea that the assessee has taken cre....
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....to a manufacturer credit of any duty of excise etc. paid on the goods used in the manufacture of the specified goods and being a beneficial legislation, its object of input duty relief to a manufacturer should not be defeated on a technical and strict interpretation of the Rules governing Modvat". 20. In the instant case, it is not a matter of dispute that the assessee has paid the duty on inputs used in the indicated manufacturing of final goods, the assessee has maintained separate accounts/record, duly entered credit of duty-paid on the inputs in manufacture of final goods and validly availed the Cenvat credit. Therefore, the same cannot be reversed on the ground that the final product (i.e. agricultural Tractors) were subsequently exem....