TaxTMI 
TaxTMI 
2007 (7) TMI 116
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....that the appellant had availed Cenvat credit in respect of Ammonia, said to have been received by the appellant during the period from July, 2001 to March, 2003. The whole quantity of Ammonia pertaining to the said period was accounted for in one lot in the month of July, 2003 and Cenvat credit was also availed in that month in the RG-23A, Part-II register. According to the Revenue, Cenvat credit was required to be taken immediately on receipt of inputs in the factory of the manufacturer as per the provisions of Rule 4(1) of Cenvat credit Rules, 2002. As per Rule 7(4) of the Cenvat credit Rules, 2002, the manufacturer was required to maintain proper records of the inputs capital goods etc. and to intimate about the same to the Department in....
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....dit should be taken as soon as the inputs were received in the factory of the manufacturer. He considered the Circular issued by the Central Board of Excise & Customs (F.No. 345/2/2000-TRU, dated 29-8-2000) and held that, the clarification issued therein conveys that the credit should not be denied even if it is not taken immediately on receipt of inputs. However, the Circular did not spell out any specific time limit for delayed taking of credit. He relied upon the decision of the Supreme Court in the case of CCE, Jaipur v. Raghuvar (India) Ltd., reported in 2000 (118) E.L.T. 311 (S.C.), for the proposition that, when no time limit for exercising such power has been laid down in law, the Court may always hold that such power be exercised w....
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...., the Cenvat credit Rules do not stipulate any time limit for availing the Cenvat credit and, therefore, the Commissioner (Appeals) has grossly erred in legislating six months' time limit for availing credit. 6. The learned authorised representative for the Department submitted that, the Circular issued by the Board on 29-8-2000 only clarified that, credit was not to be denied if it is not taken immediately, in the sense within two or four hours or so, and that the idea was that the credit should be taken at the earliest opportunity when the inputs are received in the factory. He submitted that, the provisions of Cenvat Credit Rules, 2002 requiring the credit to be taken immediately on receipt of inputs in the factory would become redundan....
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....ral Excise Rules, 1944 came to be substituted w.e.f 1-4-2000 by Notification No. 11/2000- C.E., dated 1-3-2000, as modified by Notification No. 27/2000-C.E., dated 31-3-2000. Therefore, the earlier embargo incorporated in sub-rule (5) of Rule 57G that the manufacturer shall not take credit after six months of the date of issue of any of the documents specified in Rule 57G(3) ceased to operate and by virtue of Rule 57AC, a condition came to be imposed for allowing Cenvat credit to the effect that the credit in respect of inputs may be taken "immediately on receipt of inputs in the factory of the manufacturer". The earlier provision, enabling taking of credit by the manufacturer in respect of inputs within six months, cannot be read in the am....