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TMI Blog2009 (9) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... mandate of Rule 14 of the Cenvat Credit Rules, 2004, to call back the Cenvat credit without being wrongly taken or wrongly utilised, adjudication is unsustainable - E/66 and 558/2006 - CO/177/2006 - 633-634/2009-EX(PB), - Dated:- 7-9-2009 - S/Shri D.N. Panda, Member (J) and Rakesh Kumar, Member (T) Shri B.L. Narshimhan, Advocate, for the Appellant. Shri Sansar Chand, DR, for the Respondent. [Order per: D.N. Panda, Member (J)]. - Excise Appeal No. 66 of 2006 The precise issue involved in this appeal is whether in terms of Notification No. 2/2004, dated 8/1/04, came into force w.e.f. 9-1-2004 exempting finished goods from duty? Cenvat credit in respect of Cenvatable input already utilised in terms of Rule 3 (4) of Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of dispute to call back Cenvat credit element involved in the input therein. So also the Cenvat credit involved in the finished goods lying in the factory for removal on the cut-off date of 8-1-2004 cannot be called back for reversal. 3. Learned DR submits that when the input lying on the cut-off date and not subjected to work-in progress, Cenvat credit element in respect of that input is to be reversible. Balance credit, if any, available on record remaining unutilised is not to be utilised and that is also to be reversed. 4. Heard both sides and perused the record. 5. There is no dispute by both the sides that the input is not Cenvatable. Similarly there is no dispute that part of the input had already gone into work-in prog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioned and nothing remains on record as to wrong use or misuse of the scheme, calling for reversal of Cenvat credit on the quantum of input physically present on the cut-off date, or such input partly translated into working progress and invisibly present in the finished goods cannot be called to be reversed. Since the right conferred under law having been exercised and denial of such right not being retrospectively affected by specific letters of law, the proceeding initiated by show cause notice appears to be absurd and shall not get sanction of the law. 7. We make it clear with the aforesaid reasoning that unutilised Cenvat credit existing on record as on 8-1-04 not being meant to be utilised, is never to be utilised during currency ..... X X X X Extracts X X X X X X X X Extracts X X X X
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