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TMI Blog2012 (11) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... ere procured without payment of duty and therefore without credit being taken on such inputs. Rule 3(4) of the CENVAT Credit Rules specifically refers to the purpose for which the CENVAT credit by an assessee can be utilized. The claim on behalf of the appellant that the inputs cleared by them as such should be treated as on par with final products on the ground that they are required to pay duty on them is also, prima facie, not acceptable. The CENVAT Credit Rules clearly distinguish items like “inputs”, “capital goods” and “final products”. There appears no scope for entertaining a belief that inputs cleared as such by the manufacturer-assessee could be treated as clearances of final products. - prima facie against assessee - pre depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods cleared as such on the ground that in both the cases, the appellants are not entitled to use the CENVAT credit. He also imposed penalties. 3. The learned Advocate for the appellant challenges the order on the following grounds :- (a) Referring to Rule 17 of the Central Excise Rules, 2002, he submits that any goods cleared from a 100% E.O.U. are liable to pay only Excise duty. Even in respect of the imported goods when cleared as such, the same should be treated as any goods removed from a 100% E.O.U. and once clearance is covered under Rule 17, then CENVAT credit for the payment of Excise duty on such goods can be utilized. (b) Referring to Rule 3(4) of the CENVAT credit Rules, he submits that the CENVAT credit can be ut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o excisable goods manufactured by 100% E.O.U. and the same cannot apply to inputs cleared as such and that too for inputs imported and cleared as such. He also submits that the CENVAT credit cannot be utilized for paying Customs duty on imported goods and paying Excise duty on inputs which are cleared as such when such inputs were procured without payment of duty and therefore without credit being taken on such inputs. On invocation of extended period of limitation, he refers to the findings of the Commissioner in Paragraph 18 wherein the Commissioner has clearly held that in none of the returns the appellants have shown utilization of credit for payment of duty when inputs were cleared as such as they have indicated the amount on such clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as if excise duty. In the present case, the appellant has used the credit even for payment of basic customs duty. 5.3 The Commissioner s findings is to the effect that in none of the returns, the appellants have indicated the use of the CENVAT credit in respect of the clearances of imported inputs/indigenously procured inputs and these findings have not been challenged in the Grounds of Appeal . 5.4 Further, no financial hardships is pleaded before us. 6. In view of the above and also taking the entire facts and circumstances into account, we direct the appellant to deposit a sum of Rs. 1,00,00,000/- (Rupees one crore only) within six weeks from today and report compliance to Assistant Registrar on 14-3-2012. Asst. Registrar to repo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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