2006 (3) TMI 6

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....ucts. Modvat credit availed in respect of the inputs got accumulated in their records and could not be utilized for home clearance for payment of duty. Accumulation of credit was also on the ground that whereas the rate of duty on input was 10% final product attracted duty only @ 5%. Accordingly, the refund claims on monthly basis was filed by the appellant in terms of the provisions of Rule 5 of the Cenvat Credit Rules, 2002 read with Notification No. 11/02-C.E. (N.T.). The said refund claims were rejected by the original adjudicating authority i.e. the Deputy Commissioner on the ground that computation of the amount of credit was on average basis; that the assessee have not utilized the credit for subsequent clearances; that Rule 5 is not....

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....ed under bond. As such the objection of the authority below that the appellant could have utilized the said credit for future clearances is clearly erroneous. 5. It is also seen that the appellant had availed transitional credit in terms of the provisions of Rule 9A of the Cenvat Credit Rules, 2002 and Notification No. 35/2003-C.E.(N.T.), dated 10-4-2003 to the tune of Rs. 13,19,080/-. The said rule read with Notification in question entitled the assessee to avail the credit as specified therein in respect of inputs lying in stock or semi-processed or on inputs contained in the finished goods lying in stock. The authorities below have rejected the refund on the ground that refund cannot be granted in respect of the said credit in terms o....