2017 (4) TMI 746

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....have been paying the applicable duty including Rs. 10,000/-, additional basic excise duty leviable on chassis imposed in the Budget of 2003. The appellant received the duty paid chassis and taken Cenvat credit of duty paid on chassis and also took the Cenvat credit of other inputs used in body building. After body building, the appellant cleared the body built vehicles discharging the duty on the entire value of the said body build vehicles including the duty paid on the chassis.  Revenue is of the view that appellant has taken in admissible credit in contravention of the provisions of Rule 3 of Cenvat Credit Rules, 2004, they are not entitled to take Cenvat credit as they have availed the benefit of Notification No. 6/2002 dated 01.03....

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....taken and the said credit was utilized for paying body built vehicle but there was no additional basic excise duty on the body built vehicle. The appellant has saved Rs. 10,000/- by not availing Notification No.6/2002. This is basically a consequence of extra duty on the chassis alone. 8.1. When Section 5A (1A) does not compel the appellant to avail the exemption notification like 6/2002, it cannot be forced on them by interpreting cenvat credit rules as suggested by the Department. 8.2. The relevant portion of Rule 3 of the Cenvat Credit Rules as follows: RULE 3. CENVAT credit - (1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred ....