9911796707
TMI Blog2011 (3) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... FE Limited are manufacturers of tractors and parts thereof. They are availing Cenvat credit under Cenvat Credit Rules, 2002. In terms of Notification No. 23/2004-CE, dated 1-3-2002, tractors have been exempted from payment of duty with effect from 9-7-2004. As on 8-7-2004, the assessee had a closing stock of finished goods, i.e., 319 tractors, which were manufactured using the inputs in which credit was availed and also a closing stock of inputs as such on which credit was availed. The Cenvat credit involved in the said 319 tractors was Rs. 90,77,881 and credit availed on inputs as such in stock was Rs. 1,19,06,475. As per Rule 6(1) of the Cenvat Credit Rules, 2002, the Cenvat credit shall not be allowed on such quantity of inputs which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... empted goods' ?" 5. The learned Counsel for the revenue contended that tractors were exempted from payment of duty. The Cenvat credit availed of by the assessee which forms part of the finished product namely tractor as well as the inputs in the factory cannot be claimed by the assessee and they were bound to reverse the same. As they did not comply with the demand made therein, the adjudicating authority was justified in making the demand plus interest plus penalty. The Tribunal has erroneously interfered with the said order. 6. Dealing with Cenvat credit and reversal of said credit, the Apex Court in the case of Dai Ichi Karkaria Ltd. (supra) at paragraphs 17 and 18 interpreting Rules 57A and 57J of the Central Excise Rules, 1944, has h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as good as tax paid"." 7. There is no provision in the modvat rules which provides for a reversal of the credit by the Excise authorities where it has been illegally and irregularly taken, in which event it stands cancelled or if utilised, has to be paid for. 8. The Punjab and Haryana High Court in the case of CCE v. HMT (TD) Ltd. [C.E. Appeal No. 78 of 2009, dated 5-4-2010] at paragraph 17 have held as under : "Similarly, the Principal/Larger Bench of the Tribunal after considering the various judgments mentioned in case of H.M.T. (TD) Ltd. case (supra) (between the parties) has held that when the input-credit legally taken and utilised on the dutiable final products, need not be reversed on the final product becoming exempt subsequentl ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
