2011 (8) TMI 1093

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....who are manufacturers of 'MS Rounds/CTD Bars', 'MS flats' and 'MS angles' availed exemption in terms of Notification No. 8/2003-CE, dated 01.03.2003 as amended and also availed MODVAT credit of duty paid on inputs used in the manufacture of such goods, without paying duty on the finished goods and inputs lying in stock as on 31.03.2005 and 31.03.2006, which was alleged in c....

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....ed in favour of the Revenue by the apex court's decision in Albert David Ltd. vs Commissioner [2003 (157) E.L.T.A. 81 (S.C.)]. The apex court has upheld the decision of the Tribunal reported in Albert David Ltd. vs Commissioner of Central Excise, Meerut [2003 (151) E.L.T. 443 (Tri.-Del.) holding that CENVAT credit shall not be allowed on such quantity of goods which are used in the manufacture....

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....nal product suffers the Excise Duty. If no excise duty is payable in respect of any final product, the question of availing the Cenvat credit does not arise as there is no duty of excise at more than one level. A harmonious reading of Rules dealing with Cenvat Scheme and particularly Rule 57 AC and Rule 57 AD of the Central Excise Rules, 1944 makes it very evident that Cenvat credit shall not be a....

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....he recovery is related in the instant matter to utilization of inputs for manufacture of exempted goods. As the show cause notice has been issued within one year of such utilization, demand is within the time limit specified in the Act and Rules. We are, however, of the view that in the facts and circumstances of the case, no penalty is imposable on the Appellants. We order accordingly. 3. The ....