2009 (6) TMI 825 - AT - Central Excise

Summary

Issues involved: Challenge to denial of benefit under Notification No. 58/97-C.E. for excise duty credit claimed.

Summary:
1. The appellants contested the denial of excise duty credit under Notification No. 58/97 by lower authorities.
2. Original order disallowed credit of excise duty claimed by appellants, leading to appeal which was dismissed by Commissioner (Appeals).
3. Department alleged non-compliance with condition 4 of Notification due to inputs being sent directly to job worker instead of appellants' factory.
4. Appellants argued compliance with conditions and entitlement to credit based on payment and ownership of inputs.
5. Dispute centered on interpretation of condition 4 of Notification No. 58/97 regarding direct receipt of inputs by manufacturer of final products.
6. Notification No. 58/97 specified conditions for deemed excise duty payment on inputs and credit allowance for final product manufacturers.
7. Condition 4 required direct supply of inputs to final product manufacturer, not physical delivery at specific premises.
8. Interpreting condition to mandate physical delivery at manufacturer's premises would distort the Notification's intent.
9. Apex Court precedent emphasized adherence to clear language of tax statutes without room for interpretation beyond stated conditions.
10. Appellants' receipt and payment for inputs fulfilled Notification's condition 4, justifying credit entitlement.
11. Appeal allowed, overturning denial of Cenvat credit benefit for the appellants.