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TMI Blog2013 (3) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... ‘shall’ be taken immediately on receipt of the inputs. See para 10 of the Board’s Circular No. 345/2/2000-TRU, dated 29-8-2000 & Coromandel Fertilizers Ltd. v. CCE (A) (2008 (8) TMI 333 - CESTAT, BANGALORE), Steel Authority of India Ltd. v. CCE (2001 (1) TMI 144 - CEGAT, NEW DELHI) and Tamilnadu Petroproducts Ltd. v. CCE reported in 2003 (160) E.L.T. 199 (2003 (3) TMI 217 - CEGAT, CHENNAI). Moreover in this case there was a valid reason also for not taking the credit during April, 2006 to December 2006 period, as the judgments of the Apex Court and the Tribunal on the issue of eligibility for Cenvat credit of the inputs used in the mines were against the appellant and this issue was ultimately decided in the appellant’s favour sometimes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Excise Act, 1944. The show cause notice was adjudicated by the Commissioner vide order-in-original dated 17-7-2008 by which the Commissioner confirmed demand for the above mentioned Cenvat credit along with interest and imposed equal amount of penalty on the appellant. Against this order of the Commissioner, this appeal along with stay application has been filed. 2. Heard both the sides. 3. Shri B.L. Narsimhan, ld. Counsel for the appellant, pleaded that in terms of the provisions of Cenvat Credit Rules, 2002/2004 and earlier under provisions of Central Excise Rules, 1944, a manufacturer may take Cenvat credit in respect of duty paid inputs or capital goods received in the factory immediately on their receipt, that these p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d s Circular No. 345/2/2000-TRU, dated 29-8-2000 held that Cenvat credit of Additional Customs Duty paid under Bill of Entry No. 18-3-1999 cannot be denied just because the availment of credit was delayed till 1-4-2000 due to omission, that in the case of CCE v. Raghuvar (India) Ltd. reported in 2000 (118) E.L.T. 311 (S.C.), the Apex Court has held that the provisions of Section 11A of the Central Excise Act, 1944 have no application to any action taken under Rule 57-I of the Central Excise Rules prior to its amendment on 6-10-1988 and that in view of the above submissions, the impugned order is not correct. 4. Shri R.K. Verma, ld. Departmental Representative, defended the impugned order by reiterating the findings of the Commissioner in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs used in the mines even if the mines are captive mines, the appellant had not taken credit and only after the Apex Court s judgment in the case of Vikram Cement (supra) when the earlier judgment of the Apex Court was reversed, the appellant took the Cenvat credit during Jan. 2007 to March, 2007 period in respect of the inputs used in the mines during April 2000 to Dec., 2006 period, that this credit has been correctly taken, as it is not the case of the department that the inputs, in question, had not been received and that since the rule does not prescribe any time limit for taking credit after receipt of the inputs, the credit in this case has been correctly taken. 6. We have carefully considered the submissions from both the sides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipt and there is no time limit period prescribed in these rules in this regard. The word may in sub-rule (1) of Rule 4 cannot be read as shall . The Department s contention would have been correct if sub-rule (1) of Rule 4 had provided that Cenvat credit in respect of inputs shall be taken immediately on receipt of the inputs. We, therefore, agree with para 10 of the Board s Circular No. 345/2/2000-TRU, dated 29-8-2000 in this regard which is reproduced below :- 10. Rule 57AC provides that Cenvat credit may be taken immediately on receipt of the inputs in the factory. Some apprehensions have been expressed that if the Cenvat credit is not taken immediately , like within 24 hours or so, the field officers may deny the Cenvat cre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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