TaxTMI 
TaxTMI 
2015 (9) TMI 925
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....also availing cenvat credit on the inputs. The appellants had taken credit on inputs used in the manufacture of Retail Computer system when the same were chargeable to excise duty. Subsequently, the computers were exempted from excise duty vide Notification No.23/2004-CE dt. 9.7.2004. The appellant also availed the said exemption benefit on the said final product. However, on the date of exemption, appellant had certain inputs lying in stock on which the credit was taken much before the date of exemption. The period of dispute involved in the appeal is September 2003 to August 2004. A show cause notice dt. 28.2.2055 was issued to the appellant seeking to reverse Rs. 24,34,299/- availed on the said inputs with interest thereon and penalty un....
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....n the following case laws :- 1. Tractor and Farm Equipment Ltd. Vs CCE -2014-TIOL-2307-HC-MAD-CX 2. CCE Panchkula Vs HMT (TD) Ltd. 2010-TIOL-316-HC-P&H-CX 3. CCE Vs TAFE Ltd. 2011 (268) ELT 49 (Kar.) 4. CCE Vs TAFE Ltd. Supreme Court Order dt.16.9.2011 in SLP No.14763/2011 5. Commissioner Vs Ashok Iron & Steel Fabricators 2003 (156) ELT A212 (SC) 6. CCE Chandigarh Vs Kashmir Conductors 1997 (96) ELT 257 (T) 7. Madura Coats Vs CCE 1996 (82) ELT 512 (T) 4.1 He further placed reliance on the Hon'ble Supreme Court judgment in the case of Dai Ichi Karkaria - 1999 (112) ELT 353 (SC) wherein the Apex Court while dealing with the Central Excise Rules, 1944 held that there is no provision for reversal of credit except where credit is tak....
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....011. The AR representing Revenue reiterated the order. 6.I have carefully considered the submissions of both sides. The short issue in the present case relates to whether the disallowance of cenvat credit taken on the inputs lying in stock when the Retail Computer System became exempted by Notfn No.23/2004 dt. 9.7.2004 is correct or otherwise. 7.There is no dispute on the fact that appellants are engaged in manufacture of Retail Computer System falling under Chapter heading 8471 of Central Excise Tariff Act and discharging appropriate excise duty regularly and availing cenvat credit on the inputs used in the manufacture of said final products. The computers were exempted from excise duty vide Notfn 23/2004-CE dt. 9.7.2004. Both adjudicat....
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....td. (supra) and held in favour of the appellant. The relevant paragraphs of High Court order is reproduced as under :- "14. In the instant case, assuming for the moment that the credit is available, it can be used for payment of duty on any other excisable articles and not exempted goods. In such view of the matter, we are not agreeable with the view taken by the Allahabad High Court that it will amount to unjust enrichment. We also notice that the decision in Super Cassettes Industries Ltd case, referred supra, which has been relied upon by the Division Bench in Brook Bond Lipton India Ltd. Case, referred supra, did not find favour with the Supreme Court in Dai Ichi Karkaria Ltd. Case, referred supra. In such view of the matter, it has to....
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....ts excisable product. The credit is, therefore, indefeasible. It should also be noted that there is no corelation of the raw material and the final product; that is to say, it is not as if credit can be taken only on a final product that is manufactured out of the particular raw material to which the credit is related. The credit may be taken against the excise duty on a final product manufactured on the very day that it becomes available." (emphasis supplied) 16. Once it is held that no co-relation between the raw material and the final product is required, the appellant's plea stands answered. If credit can be taken against excise duty on a final product manufactured on the very day, it makes it abundantly clear that there need not ....