2007 (10) TMI 82 - AT - Central Excise

Dyes & Chemicals being specified items in terms of Not. 6/02 are entitled to Modvat Credit Credit cannot be denied by saying that Not. 35/03 does not allow credit in respect of dyes and chemicals Revenue s appeal rejected

Summary

Issues:
Dispute over Cenvat credit for dyes and chemicals under different notifications.

Analysis:
The appeal pertains to Cenvat credit availed by the respondent for dyes and chemicals, initially denied by the Assistant Commissioner citing non-specification in Notification No. 35/2003-C.E. The Commissioner (Appeals) ruled in favor of the appellant, highlighting that Notification No. 6/2002 allows credit for dyes and chemicals. The impugned order referenced Rule 9(A) of the Cenvat Credit Rules, emphasizing that Notification No. 6/2002 covers dyes and chemicals as inputs. The appellant's submission clarified the correct notification under which the credit was claimed, leading to the conclusion that the credit for dyes and chemicals is admissible under the provisions of Rule 9(A) of the Cenvat Credit Rules, 2002. Consequently, the Cenvat credit for dyes and chemicals, amounting to Rs. 2,33,115/-, was deemed admissible.

The Revenue's appeal did not challenge the Commissioner (Appeals)'s findings regarding the eligibility of dyes and chemicals for Modvat credit under Notification No. 6/2002. Instead, the Revenue reiterated the argument that Notification No. 35/2003 does not permit credit for dyes and chemicals. However, since there was no rebuttal to the Commissioner (Appeals)'s determination on the availability of credit under Notification No. 6/2002, the appeal by the Revenue was devoid of merit and subsequently rejected. The judgment was pronounced in open court, affirming the decision in favor of the appellant regarding the admissibility of Cenvat credit for dyes and chemicals under the relevant notifications.