TaxTMI 
TaxTMI 
2017 (2) TMI 297
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....nputs used in manufacture of finished goods prior to 09.07.2004 but such goods not cleared as on 09.07.2004 as well as input lying in work in progress (WIP) remaining in stock as on 09.07.2004. Input credit was taken by appellant prior to 09.07.2004 on the inputs reached to its factory. Status of exemption was known to the appellant only on 09.07.2004. 1.2 Appellant submits that the demand in the present case relates to the period prior to 09.07.2004. To support her contention that there shall be neither recovery nor reversal of Cenvat credit warranted by law, appellant deserves consideration and its appeal may be allowed. She relies on the decision of the Hon'ble High Court of Madras in the case of Tractor and Farm Equipment Ltd. Vs C....
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....ertain inputs were lying in stock on the said date. Cenvat Credit Rules, 2002 remained in force upto 09.09.2004 and from 10.09.2004, the Cenvat Credit Rules, 2004 came into force. The 2002 Rules granted Cenvat credit as soon as the inupt reached factory. There was no provision made in the notification to deny the Cenvat credit in respect of the above category of goods. Appellant's contention that the Hon'ble High Court of Madras had occasion to deal with a case similar to the case of the appellant is correct. The Hon'ble High Court of Madras following the ratio laid down by the apex court in the case of Collector of Central Excise, Pune Vs Dai Ichi Karkaria Ltd, reported in 1999 (112) E.L.T.353 (S.C.) in para 4 of its judgment h....
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....f date are cleared at a subsequent date. The Cenvat credit earned being permitted to be used with indefeasible right that cannot be denied in absence of any express provision of law in that behalf. None can say out of which raw material the finished product was manufactured and credit is not attributable to a specific input used in manufacture. One-to-one correlation not being contemplation of law, credit is available to a manufacture on very day when raw material reaches factory, with a right to set off such credit against liability to discharge duty on clearance of output. Therefore, the appellant's reliance on the judgment of the High Court of Madras in the case of Tractor and Farm Equipment Ltd. (supra) upheld by Apex Court as repor....