2006 (11) TMI 437 - AT - Central Excise

Summary

Issues:
1. Interpretation of CENVAT Scheme post 1-4-2003.
2. Claim of deemed credit on inputs for semi-finished goods.
3. Question of double availment of credit by the appellants.

Analysis:

1. The judgment deals with the transition of textiles under the CENVAT Scheme from 1-4-2003, replacing the earlier abatement system for duties on inputs. Notification No. 25/2003-C.Ex (N.T.) was issued, allowing credit for raw materials, semi-finished goods, and finished goods as of 31-3-2003/1-4-2003, subject to specific procedures and document verification.

2. The appellants claimed deemed credit on inputs for semi-finished goods on the crucial cut-out date. However, it was found that suppliers had already availed credit on these inputs before supplying semi-finished goods to the appellants. The Commissioner's findings emphasized that multiple credits on the same inputs cannot be allowed, as it would lead to double availment, which is against legislative intent.

3. The judgment upholds the decisions of the original authority and the Commissioner (Appeals) that the appellants attempted to claim a benefit for the second time by seeking deemed credit on inputs already credited by suppliers. The court deemed this attempt unjustified and not permissible under the law, leading to the dismissal of the appeals without interference.

In conclusion, the judgment clarifies the inadmissibility of double availment of credit under the CENVAT Scheme and emphasizes adherence to the prescribed procedures and regulations to prevent unjust enrichment through multiple claims on the same set of inputs.