2008 (1) TMI 190

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.... without purchase by the appellant or sale by that unit, under Rule 57AH of Central Excise Rules, 1944. 2.1 Learned Counsel Shri Ravi Raghwan, appearing for the Appellant submitted that recovery that was sought by the impugned order was uncalled for for the following reasons :- (1) Conditions for availing credit on inputs are contained in rules other than Rule 57AE and there is no condition that inputs should be purchased in order to claim Cenvat credit. (2) Inputs in question were all purchased by the Appellants and first received in their other factories and subsequently received and used in Haldia factory. Hence Rule 57AE(3) is not contravened. (3) In any case Rule 57AE (3) does not impose the condition that inputs should be ....

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....t credit in respect of stock transfer to one unit by another, the ratio laid down in the Judgement governs the field and applies to the Appellant. He specifically drew attention of the Bench to definition of "input" under Rule 57AA of Central Excise Rules, 2000 and submitted that said "input" is not required to be "purchased" by a unit claiming CENVAT credit. He further argued that 57AB permits a manufacturer to avail credit without any embargo of "sale". Similarly 57AC provides conditions for allowing CENVAT credit. Nowhere in the Rule, essential condition of purchase is required to be satisfied. Use of "input" being a requirement for grant of CENVAT credit, mode of acquisition of input is immaterial. 2.4 Learned Counsel also drew our a....

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....appropriate duty before procurement. The order of adjudication also fails to exhibit that "purchase" is an essentiality to claim CENVAT credit under law even if the term "procurement" being substituted in Rule 7(4) of CENVAT Credit Rules, 2002. There is no doubt that Notification No. 13/03, dated 1-3-2003 has substituted the word 'procured' for the word 'purchase' in sub-rule (4) of Rule 7 of CENVAT Credit Rules, 2002 w.e.f. 1-3-2003. But Notification No. 27/2000, dated 31-3-2000 which sought to amend CENVAT Credit Rules, 2000 does not prohibit to read the said substitution for the period earlier to that, under challenge. Definition  "inputs" under Rule 57A of Central Excise Rules, 1944 read with Rule 57B and conditions laid down by Ru....