2005 (8) TMI 109

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....nal rate of duty of 8% ad valorem, subject to the condition that no credit of duty paid on the inputs and capital goods was being availed. However, the said condition was removed vide Notification No. 10/2003-C.E., dated 1-3-2003 and the appellants started availing the Cenvat credit of duty paid on the inputs and the capital goods. The dispute in the present appeals relate to the Cenvat credit in respect of inputs lying in stock as on 1-3-2003, either as such or in the shape of in process goods or finally manufactured goods, in terms of Rule 9 of the Cenvat Credit Rules 2002. The Revenue's contention is that the said Rule being a transitional provision, provide for availing Cenvat credit of duty on inputs lying in stock, when the exempted f....

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....or to 1-3-03, there was no credit earned by the appellant, the question of transfer of the same does not arise. Similarly sub-rule (2) of Rule 9 is applicable only where exemption notifications are based on value/quantity of clearance in a financial year. As such, I am of the view, that transitional provisions as contained under Rule 9 of Rules 2002 are not applicable. 5. Reference has also been made to the provisions of Rule 3 to sub-rule (2). The said Rule reads as under Rule 3(2). "Notwithstanding anything contained in sub-rule (1), the manufacturer or producer of final products shall be allowed to take Cenvat credit of the duty paid on inputs lying in stock or process or inputs contained in the final products lying in stock on the....