2007 (8) TMI 533 - AT - Central Excise

Summary

Issues involved: Apparent mistake in Final Order No. 464/2007, application of Rule 6(2) of the Cenvat Credit Rules, 2004, consideration of judgments on subsequent reversal of Cenvat credit, application of Rule 6(3), relevance of Supreme Court's judgment in Chandrapur Magnet Wires (P) Ltd. v. CCE, and recall of Final Order No. 464/2007 in Appeal No. E/771/2006.

Application of Rule 6(2) of the Cenvat Credit Rules, 2004:
The appellants pointed out an error in the application of Rule 6(2) of the Cenvat Credit Rules, 2004 to the entire disputed period of 1-10-2004 to 30-9-2005. They argued that the amended rule was not applicable before 16-5-2005. Additionally, they highlighted that Cenvat credit on furnace oil was not availed by them from 1-9-2005, making the provisions inapplicable for September 2005. After due consideration, the Tribunal acknowledged this mistake.

Consideration of judgments on subsequent reversal of Cenvat credit:
The appellants raised a concern regarding the proper consideration of judgments related to the reversal of Cenvat credit on inputs used in the manufacture of exempted final products. They referred to various judgments, including the Supreme Court's ruling in Chandrapur Magnet Wires (P) Ltd. v. CCE and decisions of the Tribunal. The appellants argued that the Bench did not adequately consider these judgments. Upon review, the Tribunal agreed to consider the judgments cited, which could impact the outcome of the appeal in favor of the appellants.

Recall of Final Order No. 464/2007 in Appeal No. E/771/2006:
Based on the identified mistakes and the arguments presented by the appellants, the Tribunal decided to recall the Final Order No. 464/2007 passed in Appeal No. E/771/2006. The appeal was scheduled for rehearing and disposal on 27th September 2007. However, Final Order No. 463/2007 in Appeal No. E/43/2006 remained unaffected by this decision. The Tribunal allowed the ROM application to the extent mentioned above.