2017 (1) TMI 540

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....Tariff Act, 1985. They were clearing the goods after paying duty @ 4% under Notification No.29/2004-CE dated 9.7.2004. With effect from 31.7.2005, the appellants opted for clearance of their finished goods under Notification No.30/2004-CE dated 9.7.2004 (domestic clearance) and Notification No.29/2004-CE dated 9.7.2004 (for export of clearance) simultaneously. They reversed the cenvat credit of Rs. 12,54,363/- plus education cess of Rs. 25,000/- as cenvat credit involved on stock lying with them as on 31.7.2005. Subsequently, they noted that while calculating the amount on stock lying with them, they did not take into account the duty on inputs contained in finished goods and semi finished goods involving credit of Rs. 1,51,036/-. On being ....

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....e case of Tractor and Farm Equipment Ltd. vs. CCE, Madurai - 2015 (320) ELT 357 (Mad.) and of the Hon'ble Himachal High Court in the case of CCE, Chandigarh vs. Saboo Alloys Pvt.Ltd.-2010 (249) ELT 519 (H.P.). 519 (H.P). 4. Learned AR reiterated the findings of the Commissioner (Appeals) and submitted that the case was covered by the Tribunal s judgement in the case of Albert David Ltd (supra) against which civil appeal and review petition had been dismissed by Hon'ble Apex Court. 5. Heard both the parties and perused the records. 6.1 As rightly pointed out by Ld. Advocate, the decision of Albert David Ltd. (supra) is not applicable in the instant case as the provision for payment of equivalent amount of credit was introduced in CC....

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.... 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 be co-relation between the input and the goods cleared and as a result, validly taken credit need not be reversed. The Central Excise Rules would come into play in the following manner, that is to say, on the date when the final goods become exempt from payment of duty, for the inputs received on and after the said date, no credit can be taken. This would be the correct method of understanding of the position of law. 17. The introduction of Rule 11(3) of the Cenvat Credit Rules, 2004, by Notification No. 10/2007-C.E. (N.....