TaxTMI 
TaxTMI 
2025 (6) TMI 762
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....at Credit Rules, 2004 read with Section 11AC 1(C) of the Central Excise Act, 1944. 2. The brief facts are that the appellant is a registered manufacturer of primary form of 'Styrene and Acrylic Polymers' classifiable under Central Excise chapters 3903 & 3906 of the Central Excise Tariff Act, 1985. They are availing Cenvat credit on inputs, capital goods and input services. While verifying the eligibility of cenvat credit taken on invoices it was noticed by the Department that the appellant is receiving imported inputs supplied by the appellant's unit situated at IMC Storage Tank Terminal, JNPT Port, Raigad District, having Central Excise dealer registration No.AAACR2855FED016, coming under the jurisdiction of Alibag Division of Central Excise. The Chennai factory of the appellant was availing Cenvat credit of the imported inputs based on the invoices issued by the Raigad unit of the appellant having the aforementioned Central Excise dealer registration. The department was of the view that as per Rule 9(1) (a) of the CCR, 2004, the Cenvat credit shall be taken by the manufacturer based on invoices issued by a registered importer or an importer from his depot or the premises of th....
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.... Rule 9 (1), it is clear that if a person who is already registered with the Department as a dealer and is issuing Cenvat invoices, and if such person as a dealer, deals with locally procured goods and also intends to deal with imported goods, the Rule does not require him to get yet another separate registration as importer. The Rule only requires an importer, who wants to issue invoices to enable another person to take Cenvat credit on the specific duty paid on imported goods, to obtain registration under the Central Excise Act. He would submit that during the period of dispute and on the date of issue of invoices, the Raigad unit was holding valid Central Excise Registration as a dealer and thus the requirement of Rule 9 (1) stood fulfilled when the appellant issued invoices for imported goods in the capacity as a dealer. Hence there is no violation of any of the provisions of the Act or rules. The Ld. Counsel further submits that the Adjudicating Authority has erred in holding that during the subject period the appellant in his capacity as first stage dealer could not issue an invoice based on which CENVAT can be taken for the goods imported by them. It is his submission that t....
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.... decision in Uniworth Textiles Ltd. vs C.C.E., Raipur [2013 (288) ELT 161 (SC)]. 4. Ld. AR Shri Harendra Singh Pal appeared for the respondent and reiterated the findings of the adjudicating authority. He further relies on a decision in HM Bags Manufacturer v CCE, 1997 (7) TMI 119-SC to contend that the Board's Circular dated 28th June, 2016 cannot be applied retrospectively. 5. We have heard the rival submissions, perused the appeal records as well as the case laws submitted as relied upon. 6. The principal issue that arises for determination is whether the appellant is eligible to avail the input credit on imported goods based on invoices issued by a dealer who is not registered as an 'importer' consequent to the amendment in Rule 9 of the Central Excise Rules, 2002 vide notification No.8/2014-CE (N.T) dated 28.02.2014. An attendant question would also be whether the Department is justified in invoking the extended period of limitation. 7. We note that the amended Rule 9(1) of the Central Excise Rules, 2002, (CER, 2002) as it stood for the relevant period is as under: "Rule 9. Registration. - (1) Every person who produces, manufactures, carries on trade, hold....
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....s own business purposes, may so register. 2.2 Such assessee who conducts business both as a First Stage Dealer and an Importer, henceforth shall also have the option of filing a single quarterly return giving details of transactions as a first stage dealer and an importer, one after the other in the same table of the return, viz., all transactions as first stage dealer during the return period shall be followed by all transactions as an importer during the same return period. 3. Difficulty experienced, if any, in implementing the circular should be brought to the notice of the Board. Hindi version would follow." 11. Thus, we find that any room for interpretative confusion, that may have prevailed, has been decisively obliterated by the said Notification read in conjunction with the Board Circular. The intent and purpose are clear. An assessee who conducts business, both as an importer and a First Stage Dealer, may take only one registration as he has been exempted from the requirement of taking a second registration. The requirement to register, in so far as a First Stage Dealer who is also an importer is concerned, is at the option of the assessee and any asse....
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....th used in the present circular, is merely indicative of the fact that the assessee who was conducting business both as a First Stage Dealer and an Importer hitherto, also has, thereafter, the option of filing a single quarterly return giving details of transactions as a first stage dealer and an importer, one after the other in the same table of the return. In other words, the term henceforth is with respect to the option of filing single quarterly return that is being extended to the assessee, and that does not convey that prior to the issuance of the said Circular, there was a mandate requiring a dealer, who is also an importer, to register separately. 15. In any event, we also note that the show cause notice as well as the impugned order in original concedes that the Appellant is a dealer, duly registered with the Department. It is also undisputed that the invoices issued by the appellant are in accordance with Rule 11 of the CER, 2002. Therefore, as elucidated supra, when Rule 9(1)(a)(iv) of the Cenvat Credit Rules, 2004 stipulate that cenvat credit shall be taken by the manufacturer on the basis of an invoice issued by a first stage dealer or a second stage dealer, as the ....