2008 (7) TMI 377

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....r Heading 8481. It became an EOU on 19-11-04. The original authority had denied Cenvat credit balance of Rs. 11,07,017/- as there was no stock on 19-11-04 of inputs received by GTN during 6-9-04 to 18-11-04. Notification No. 18/04-C.E. was issued on 6-9-04. This notification had allowed an EOU avail Cenvat credit, He had also demanded Rs. 3,97,422/- payable on DTA clearances of inputs as such, made during 19-11-04 to 31-3-05 and applicable interest. Penalty of Rs. five lakhs was imposed under Rule 25 of Central Excise Rules, 02 (CER). 3. Disposing appeal filed by GTN against the above order, vide Order- in-Appeal No. 92/06-C.E., dated 8-8-06, the Commissioner (Appeals) held as follows:- There was no prohibitive clause in the case of c....

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....eversed the credit taken initially, on removal. 5. In Order-in-Appeal No. 109/2007 CE, dated 19-12-2007, Commissioner (A) found that as per Order-in-Appeal No. 92/06, credit was available on balance in stock of goods received between 6-9-04 and 18-11-04. Appellants had furnished a statement of stock as on 19-11-04, notionally arrived. GTN had furnished copies of invoices for Rs. 9,65,789/- and not for entire Rs. 1094156/-. The Commissioner (A) rejected their claim as this figure was unsubstantiated and affirmed demand of interest & penalty as well. Appeal No. E/157/08 is directed against Order-in-Appeal No. 109/2007 6. The appeal No. E/810/06 has raised the following grounds. Notification No. 18/04 made EOUs eligible to utilize Cenvat....

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....s per Notification No. 5/06-C.E. (N.T.), dated 14-3-06, refund of unutilized credit could be sanctioned. This Notification allowed EOUs to make monthly claims for refund. Circular No. 799/32/04, dated 23-9-04 clarified entitlement of EOUs to credit. Reversal of credit availed when inputs were cleared as such as per Rule 3(5) of CCR '04 was in order. GTN relied on the decision in CCE v. American Auto Services - 1996 (81) E.L.T. 71 (Tri.-LB). Rs. 3,33,774/- paid by the appellant had to be adjusted. 8. Order-in-Appeal No. 109/07 ruled that credit was admissible on inputs and capital goods received after issue of Notification No. 23/04-CX/NT, dated 10-9-04 and lying in balance on the date of conversion of DTA into EOU on 19-11-04. 9. Appe....