TaxTMI 
TaxTMI 
2010 (10) TMI 1122
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.... this Court; "(A) Whether in view of the provision of Rule- 3(2) and 6(1) of the Cenvat Credit Rule, 2002, the credit taken and utilized earlier in the inputs material by the manufacturer should be reversed or not if the same is used for manufacture of nonexcisable goods ? (B) Whether the learned Tribunal committed error in relying upon decision in the case of M/s. H.M.T. Vs. CCE Panchcula, 2008 (232) ELT 217 (Tri.LB) though the fact in the case was different than this present case ?" 2. This Court has issued notice for final disposal on 22.8.2010. Pursuant to the notice Mr. Anand Nainawati, learned advocate appears for Mr. B.L. Narsimhan for the respondent. 3.Heard Ms. Naynaben Gadhvi, learned Standing Counsel for the ....
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....edit amounting to Rs. 4,42,677/- on Bare Bars and Rs. 63,952/- on Epoxy Powder and thereby total amount of Cenvat credit of Rs. 5,06,629/- was availed on inputs involved in the final products i.e. Epoxy Coated Bars of 252.578 M.T. which was cleared without payment of duty after 31.7.2003. 7. In view of above facts, a show cause notice dated 12.9.2006 was issued to the respondent unit and after considering the reply the adjudicating authority has passed Order-in- Original on 15.2.2007, taking the view that the respondent Unit is liable to pay an amount equivalent to the Cenvat credit attributable to inputs lying in stocks, or in process or contained in final products lying in stock on the date when the option of stopping of payment of dut....
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.... inputs which are used in manufacture of exempted products except in the circumstances mentioned in sub-rule (2) of Rule 6 of Cenvat Credit Rules, 2004 as per which the manufacturer shall maintain separate accounts for receipt, consumption and inventory of input meant for use in the manufacture dutiable final products and the quantity of inputs meant for use in the manufacture of exempted goods and take Cenvat credit only on that quantity of input which is intended for use in the manufacture of dutiable goods. She has, therefore, submitted that since the input lying in stock contained in finished products lying in stock and the inputs contained in work in progress as on 31.7.2003 were not used in dutiable final product because of the fact t....
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....y this Court and accordingly the questions raised herein are required to be answered in favour of the revenue and against the assessee. 12. Mr.Nainawati, learned advocate appearing for the respondent - assessee, on the other hand, has invited Court's attention to the decision of the Punjab & Haryana High Court in the case of CCE Panchkula & Anr. Vs. H.M.T. (T.D.) Ltd., & Anr., reported in 2010 (98) RLTONLINE 143 (P & H), wherein the Larger Bench decision of the Tribunal was confirmed by the P & H High Court. The Court after referring to various judgments of the Tribunal and High Courts and more particularly placing reliance on the Apex Court decision in the case of Dai Lchi Karkaria (Supra) held that it is not a matter of dispute tha....
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.... that whether the end product in or in relation to which inputs are used is exempted from the whole of the duty or is liable to Nil rate of duty, is to be considered in the light of prevailing provisions on the date of receipt of the inputs in the factory and not with reference to any other date. 14.Mr. Nainawati further submitted that the Larger Bench decision of the Tribunal in the case of Commissioner of Central Excise Vs. Ashok Iron & Steel Fabricators, reported in 2002 (140) ELT 227 (Tri.LB), has taken the view that a manufacturer obtains credit for the excise duty paid on raw-material to be used by him in the production of an excisable product immediately it makes the requisite declaration and obtains an acknowledgment thereof. It ....