2017 (6) TMI 468

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....pellants purchased certain capital goods and availed Cenvat Credit thereon and utilized it for payment of excise duty on the final products cleared during the above period. The total Cenvat Credit availed during the above period amounting to Rs. 28,25,516/- has been ordered for recovery by the authorities below. Aggrieved by the impugned order, the present appeal has been filed. 3. With the above background, we heard Ms. Rinki Arora, learned counsel for the Appellants and Shri M.R. Sharma, learned DR for the Revenue. 4. The learned counsel for the Appellants submitted that the Cenvat Credit availed on capital goods has been ordered to be recovered on account of the fact that such capital goods were utilized in the manufacture of fully....

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....Bench of this Tribunal in the case of Commissioner of Central Excise, Rajkot vs Ashok Iron & Steel Fabricators, 2002 (140) ELT 277 (Tri.-LB), wherein the Tribunal has held that : "6. Before the Supreme Court the Attorney General drawing support from the decision in Super Cassettes Industries Ltd. contended that there could be no final credit until the inputs were used and excise duty on the final product was paid or the inputs were otherwise disposed of. The submission was that the credit was a contingent credit. It might be disallowed under certain circumstances. The manufacturer did not have any indefeasible right or title to it. The credit of excise duty on the raw material in the register maintained for Modvat purposes was only a boo....

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.... manufactured out of the particular raw material to which the credit is related. The credit may be taken against the excise duty on a final product manufactured on the very day that it becomes available." 7. The learned Departmental Representative very staneously argued interpreting different provisions relating to the Modvat Scheme that availing of Modvat credit was not irrevocable and when subsequently the end product was exempted from duty the entry has to be reversed even if the credit has been utilised by the time. He placed reliance on the following decisions of the Supreme Court in - (1) CCE, Meerut v. Modi Rubber Ltd. [2001 (133) E.L.T. 515 (S.C.)] (2) CCE, Jaipur v. Raghuvar (India) Ltd. [2000 (118) E.L.T. 311 ....