2003 (11) TMI 126 - AT - Central Excise

Summary

Issues:
Entitlement to Cenvat credit for inputs in stock prior to notification extending credit for aerated waters.

Analysis:
The main issue in the appeal was whether the appellants were entitled to Cenvat credit for inputs in stock when the benefit of the credit was extended for aerated waters from a specific date. The Commissioner (Appeals) noted that Cenvat credit on glass bottles was not admissible before the notification of 31-3-2000, which allowed credit for inputs received after 1-4-2000 without retrospective effect. The Commissioner highlighted the restriction that inputs must be received after the specified date for credit under Rule 57AB(1) of the Central Excise Rules, 1944, making it clear that retrospective credit on glass bottles was not permissible.

An important precedent was cited where a similar issue was addressed by the Tribunal in the case of Lumbini Beverages Pvt. Ltd. The Division Bench in that case decided that credit for glass bottles and other inputs in stock as of 1-4-2000 was not allowable. This decision was made after thorough consideration of legal provisions and past judgments. The current Tribunal, in line with the Lumbini Beverages case, upheld the decision to reject the appeal and affirmed the original order.

In conclusion, the Tribunal relied on the precedent set in the Lumbini Beverages case to determine that the appellants were not entitled to Cenvat credit for inputs in stock prior to the notification extending credit for aerated waters. The decision was based on the specific provisions of law and previous rulings, leading to the rejection of the appeal and upholding of the initial order.