TaxTMI 
TaxTMI 
2017 (8) TMI 1107
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....ceived in their Baddi Plant during the year 2001-02 and balance 50% of credit was taken in the subsequent financial year 2002-03. Credit availed in the subsequent financial year 2002-03 was alleged to be not in order because one of the Auto Coners was transferred by the appellants to their another unit i.e. Guna Plant in 2001-02, the year in which it was received in the factory of the appellants, by debiting full amount of duty involved thereon i.e. Rs. 11,25,898/-. As the capital goods on which 50% of the balance credit taken during 2002-03 was not available, the Revenue felt that credit of Rs. 5,62,949/- (50% of the total duty of Rs. 11,25,898/-) taken by the appellants was not admissible to them. A show cause notice was issued to the app....
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....pport of his contention, he submitted a certificate from a Chartered Accountant showing Cenvat credit balance from 2001-02 to 2011-2012. 4. On the other hand, Ld. A.R. for the Revenue reiterated the findings in the order of Commissioner (Appeals) and referred to Rule 4(2)(b) contending that after taking credit of Rs. 11,25,898/- in the first year, they could not take the credit of Rs. 11,25,898/- again because only one Auto Coner was left in the Baddi Plant. He relied upon the following case laws in his support: (i) CCE, Pondicherry Vs. Hindustan Lever Ltd - 2010 (257) E.L.T. 326 (Mad.) (ii) Sri Krishna Alloys Vs. CCE, Salem - 2006 (200) E.L.T. 158 (Tri.-Chennai) 5. Heard both the sides and examined the records. 6.1 I find that the app....
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....hen a particular thing is directed to be performed in a manner prescribed by Rules, it should be performed in that manner itself and not otherwise. 6.2 I find that after the detection by audit, the appellants have taken the position that both the plants of the assessee have taken the total credit of Rs. 22,51,796/- only (Rs. 11,25,898/- each per Auto Coner), thus making the total credit so availed equal to due amount of credit. However, that proposition is made in disregard of the Cenvat Credit Rules. In this regard, I find force in the contention of Ld. Commissioner that the appellants could not have reversed 100% credit of duty paid on one Auto Coner, which would have been violative of Rule 4(2)(a) of CCR, 2001. In this regard, his findi....
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....on'ble High Court of Madras in case of CCE Vs. Hindustan Lever Ltd - 2010 (257) ELT 326 (Mad.) has held that: "Cenvat/Modvat Capital Goods Quantum of credit 100% credit taken in first year and capital goods transferred to another unit under Central Excise invoice Period of dispute 2001-2002 - Submission that proviso to Rule 4(2) of Cenvat Credit Rules, 2001, providing for 100% credit when capital goods cleared in same year, coming into force from 1-3-2002 and available even prior to 1-4-2000, was also available for interregnum period by applying Sections 21 and 24 of General Clauses Act, 1897 HELD : During relevant financial year, benefit extended only to avail 50% of Cenvat Credit No scope for invoking provisions of Sections 21 and 24 ib....