2022 (2) TMI 1119

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....as they have arisen out of common order dated 22.02.2011, passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi Principal Bench, Court No.1 (hereinafter referred to as 'the Tribunal'). 2. Case of the appellant, in brief, is that it was engaged in the manufacture of readymade garments, falling under Chapter heading 61 of the Central Excise Tariff Act, 1985 (hereafter referred to as 'the Act'). Prior to 2003, there was no Central Excise duty on readymade garments. However, in the budget presented in the year 2003, Government imposed duty on all kinds of garments, falling under Chapter heading 61 and 62 of the Act. As per Rule 3 (2) of the Cenvat Credit Rules, 2002 (hereafter referred to as 'the Rules'), a manufacturer w....

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.... goods had already been cleared from the factory prior to the issuance of the notification. On the basis of this opinion, show-cause notices dated 06.05.2005 were issued to the appellant as to why Cenvat Credit, availed and utilized by it, should not be recovered and penalty should not be imposed. The show-cause notices were duly contested by the appellant. However, the Joint Commissioner/ Adjudicating Authority, vide orders dated 06.05.2005, confirmed the demand and imposed penalty on the appellant. In appeal, the orders passed by the Adjudicating Authority were set-aside by the Commissioner (Appeals), vide its order dated 24.05.2005. Respondent challenged the said order before the Tribunal and the appeals filed by the respondent were allo....

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....id on inputs of such finished product, lying in stock or in process or contained in finished products, lying in stock as on 31st day of March, 2003 upon making a written declaration of the description, quantity and value of the stock of inputs (whether lying in stock or in process or contained in finished products lying in stock) and subject to availability of the document evidencing actual payment of duty thereon. (2) Notwithstanding anything contained in sub-rule (1), the manufacturer, producer, first stage dealer or second stage dealer, as the case may be, referred to in the said sub-rule, who is unable to produce the document evidencing actual payment of duty, shall be entitled to avail credit, calculated in a manner referred to in s....

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....e (N.T.) dated the 1st March 2002, subject to such conditions as prescribed under the said notifications, the credit shall be equal to the product of, (A) the applicable percentage credits in terms of the said notifications; (B) the value of such finished product declared by the Assessee; and (C) the duty rate applicable to such final product in terms of Notification No.7/2003-Central Excise, dated 28-2-2003. Explanation:- For removal of doubt, it is hereby clarified that the entire amount of credit as eligible under sub-rule (1) and/or (2) shall be calculated by the Assessee himself who can take credit accordingly." 8. Facts in the present case are not in dispute. Appellant is dealing in manufacture of readymade garments. Dur....