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TMI Blog2010 (6) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturer for deemed credit and the declarations are to be filed on or before 15th June, 2003 as provided under sub-rule (4) - declaration under sub-rule (1) of Rule 9A was filed after due date and the appellants failed to produce the necessary documents showing payment of duty – Appeal dismissed - E/229/2006 - A-396/KOL/2010 - Dated:- 8-6-2010 - S/Shri S.S. Kang, Vice-President and M. Veeraiyan, Member (T) Shri A.K. Sharma, JDR, for the Respondent. [Order per : S.S. Kang, Vice-President]. - Heard both sides. The appellants filed this appeal against the impugned order whereby the credit of Rs. 61,35,312/- was disallowed by the adjudicating authority. 2. Brief facts of the case are that the appellants are engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of Rs. 81,11,297/- in respect of yarn contained in the finished goods on the ground that they have the documents showing payment of duty on the inputs contained in the final products. Before the adjudicating authority, the appellants conceded that they have only documents regarding payment of duty on the inputs to the extent of Rs. 55,12,633/- as against actual claim of Rs. 81,11,297/-. The adjudicating authority in the impugned order rejected the claim of the appellants on the ground that they failed to produce the documents showing actual payment of duty in respect of the inputs contained in the final products and the documents produced by the appellants are not valid duty paying documents. 3. The contention of the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur v. L H Sugar Mills Ltd. reported in 1999 (105) E.L.T. 368 (Tribunal). 4. The ld. JDR for the Revenue submitted that as per the provisions of Rule 9A of Cenvat Credit Rules, 2002, which are transitional provisions for Textile and Textile Articles, the manufacturer has to file declaration on or before 15th June, 2003 claiming the credit in respect of the inputs lying in stock or in process or contained in finished products on actual basis by producing the duty paying documents or as provided under sub-rule (2), in case the manufacturer is not having duty paying documents, the manufacturer is entitled for deemed credit. The appellants first filed declaration under sub-rule (2) of Rule 9A of the Rules in respect of the yarn contain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "Rule 9A. Transitional provisions for Textile and Textile Articles.- (1) A manufacturer, producer, first stage dealer or second stage dealer of goods falling under Chapter 50 to 63 of the First Schedule to the Tariff Act ] shall be entitled to avail credit equal to the duty paid on inputs of such finished product, lying in stock or in process or contained in finished products lying in stock as on 31st day of March, 2003 upon making a written declaration of the description, quantity and value of the stock of inputs (whether lying in stock or in process or contained in finished products lying in stock) and subject to availability of the document evidencing actual payment of duty thereon. (2) Notwithstanding anything contained in sub-rule (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants only claimed the benefit to the extent of Rs. 55,12,633/. 7. We find that a major part of the claim is on the basis of the invoices issued by the consignment agent and without duty payments particulars. The appellants tried to correlate to duty payment by producing certificate of consignment agents or by manufacturer. We find that the invoices are issued by the consignment agents much prior to 31-3-2003 i.e. for the months of August and October, 2002 and the appellants claimed the credit in respect of the yarn contained in the finished products as on 1-3-03 and there is no evidence on record that the goods manufactured out of the yarn received in August, October, 2002, were still in the stock. 8. Further we find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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