2022 (5) TMI 576

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....3rd February 2010 on the following substantial questions of law:- 1) Whether the Learned Tribunal erred in not appreciating that as per the provisions of Rule 57AE of the Central Excise Rules, 1944 and Rules 7(3) and 7(4) of the Cenvat Credit Rules, 2001/2002 as were in force at the material point of time availing of Cenvat Credit on inputs received on stock transfer was not admissible ? 2) Whether "purchase" of inputs and maintaining a record inventory of the inputs so purchased are mandatory conditions to be fulfilled for availing Cenvat Credit on inputs received by a manufacture prior to February 28, 2003? 3) Whether the learned Tribunal erred in not holding that the respondent had not discharged their buden of proof fulfillng th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g, if that was baseless for no sanction off law to deny the benefit, proceeding shall not proceed against the Appellant. Althouh the judgment was delivered by Hon'ble Apex Court under the earlier Rule 57CC of Central Excise Rules, 1944, whether sale was prerequisite for availing modvat credit in respec tof stock transfer to one unit by another, the ratio laid down in the Judgment governs the field and applies to the Appellant. He specifically drew attention of the Bench to definition of "input" under Rule 57AA of Central Excise Rules, 2000 and submitted that said "input" is not required to be "purchased" by a unit claiming CENVAT credit. He further argued that 57AB permits a manufacturer to avail credit without any embargo of "sale". Simila....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in Rule 7(4) of CENVAT Credit Rules, 2002. There is no doubt that Notification No. 13/03, dated 1-3-2003 has substituted the word 'procured' for the word 'purchase' in sub-rule (4) of Rule 7 of CENVAT Credit Rules, 2002 w.e.f. 1-3-2003. But Notification No. 27/2000, dated 31-3-2000 which sought to amend CENVAT Credit Rules, 2000 does not prohibit to read the said substitution for the period earlier to that, under challenge. Definition "inputs" under Rule 57A of Central Excise Rules, 1944 read with Rule 57B and conditions laid down by Rule 57AC nowhere warranted 'purchase' is sine qua non. Therefore Notification No.13/2003, dated 1-3-2003 guides to appreciate legislative intention. Further, decisions cited by learned Counsel also brings its ....