2005 (12) TMI 187

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....rers of fruit pulp/concentrate, an excisable commodity. W.e.f. 25-7-1991, the goods were exempted. The respondents were availing Cenvat credit in respect of the inputs/packing material. Revenue proceeded against the respondents for reversal of the Cenvat credit utilized irregularly as the final products were exempted from payment of duty w.e.f. 25-7-1991. The respondents relied on the following decisions:- (i)         CCE, Bangalore v. Wipro Information Technology - 1988 (33) E.L.T. 172 (Tri.) (ii)        CCE, v. Sri Sarvaraya Sugar Bottling Limited - 1992 (59) E.L.T. 125 (Tri.) (iii)       CCE, Rajkot v. Ashok Iron and Steel Fabricators - 200....

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....sp;     The above case law is distinguishable. (v)        It deals with a situation where the final product was exempted and the intermediate products are dutiable for some time and have become exempted later by virtue of a notification. The demand pertains to the inputs lying as on the date of the exemption and to be specific, the credit involved on such inputs which was already utilized. It is to be noted that the Apex Court affirmed the decision in the case of Albert David Ltd. v. CCE, Meerut as reported in 2003 (158) E.L.T. A273 (S.C.) wherein the demand for reversal of credit on inputs lying in stock was upheld. Two contra opinions have been arrived by the Apex Court on similar ....

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....he Apex Court. "It is clear from these Rules, as we read them, that a manufacturer obtains credit for the excise duty paid on raw material to be used by him in the production of an excisable product immediately it makes the requisite declaration and obtains an acknowledgement thereof. It is entitled to use the credit at any time thereafter when making payment of excise duty on the excisable product. There is no provision in the Rules, which provides for a reversal of the credit by the excise authorities except where it has been illegally or irregularly taken, in which event it stands cancelled or, if utilised, has to be paid for. We are here really concerned with credit that has been validly taken, and its benefit is available to the man....