2012 (8) TMI 441 - AT - Central Excise

Non eligibility to avail cenvat credit of the inputs lying in stocks - non filing of intimation as to declaration filed was a final one - Held that - As the last date for availment of such credit and filing the declaration has been extended till 30.06.03 - the appellant had filed one declaration on 07.04.03 and subsequent declaration on 29.04.03 and no further declaration filed ,thus the declaration made by the appellant on 29.04.03 should have been considered as the final declaration and the Revenue Authorities should have at least allowed credit of the stocks as declared by him on 29.04.03 - in favour of assessee.

Summary

Issues involved:
Eligibility to avail cenvat credit of inputs lying in stocks as on 31.03.03.

Detailed Analysis:

Issue 1: Eligibility to avail cenvat credit of inputs
The case revolves around the eligibility of a manufacturer to avail cenvat credit of inputs lying in stock as on 31.03.03. The provisions for allowing such credit were introduced through Rule 12(A) of the Cenvat Credit Rules, 2002, with subsequent amendments. The key requirement was for the manufacturer to declare the stock on 31.03.03 before 30.04.03 and indicate the intention to avail cenvat credit on duty paid for such stock. The deadline for availing this credit was extended multiple times until 30.06.03. The appellant had submitted declarations on 07.04.03 and 29.04.03 but did not file any further declarations. The issue was whether the declaration made on 29.04.03 should be considered final, entitling the appellant to credit for the stocks declared on that date.

Analysis:
The Tribunal analyzed the submissions from both sides and reviewed the relevant records. It noted that the appellant had indeed filed declarations on two separate dates, with the last declaration made on 29.04.03. The Tribunal emphasized that the Revenue Authorities should have at least allowed credit for the stocks declared on 29.04.03. Referring to a previous judgment in the case of Balkrishna Textile Mills, the Tribunal highlighted that the issue was favorably decided for the assessee in a similar context. By considering the final declaration made by the appellant on 29.04.03, the Tribunal concluded that the impugned order denying the credit was incorrect and set it aside. The appeal was allowed based on the judicial pronouncement and the reasons provided.

Conclusion:
The Tribunal's decision centered on the interpretation of the Cenvat Credit Rules regarding the eligibility of a manufacturer to avail credit for inputs held in stock as of a specified date. By considering the final declaration submitted by the appellant, the Tribunal found in favor of the assessee, setting aside the original order and allowing the appeal with any consequential relief. The judgment highlighted the importance of following the prescribed procedures for availing cenvat credit and the significance of timely and accurate declarations in such matters.