9911796707
TMI Blog2011 (4) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; 2. The respondents are engaged in the processing of cotton fabrics and manmade fabrics. The facility of transitional cenvat credit was provided to the textile sector vide Rule 9A of the Cenvat Credit Rules, 2002. The said rule provided for allowing transitional credit of inputs lying in stock or in process or contained in final products lying as on 31.03.03 subject to making a written declaration of the description, quantity and value of such inputs. 3. The respondents filed a written declaration in terms of the provisions of sub-rule 2 of Rule 9A of the Cenvat Credit Rules, 2002 on 07.04.03 wherein they declared the stock position of inputs lying in stock as on 31.03.03. Subsequently, the respondents vide their letters dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared inputs. Thus, it appeared that the cenvat credit of Rs.15,35,220/- taken on the basis subsequent declarations dated 12.06.03 and 13.06.03 was inadmissible. 6. On the above basis proceedings were initiated against them vide show cause notice dated 01.10.03 proposing to deny the cenvat credit of Rs.38,27,932/- and of Rs.15,35,220/- and to confirm interest and to impose penalty. The said show cause notice stands dropped by the Commissioner by observing as under: I have considered the contentions of the noticee as there is neither any condition nor any restriction clause has been inserted in Rule 9A of Cenvat Credit Rules, 2002 that a credit should be disallowed, if declarations are either not filed consolidated or in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal filed by the Revenue, we fully agree with the reasoning adopted by the Commissioner. Admittedly during the relevant period, there were various amendments to the provisions of Rule-9, allowing modvat credit in terms of the provisions of transitional Cenvat Credit Rules, 2002 and extending the facilities to the textile units. The period to file declarations in respect of stock on inputs was extended from time to time and with this view the period was extended by June 2003. We agree with the contention of the respondents that the provisions of sub rule 5 introduced in Rule 9A(b) refers to a manufacturer, who has already made declarations of the goods lying in stock as on 31.03.03 and has availed credit on or before 30th day of April 2002, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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