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TMI Blog2014 (2) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. Thus a right accrued to the assessee on the date when they paid the tax on the raw materials or the inputs and that right would continue until the facility available thereto gets worked out or until those goods existed. Therefore, it becomes clear that Section 37 of the Act does not enable the authorities concerned to make a rule which is impugned herein and, therefore, we may have no hesitation to hold that the rule cannot be applied to the goods manufactured prior to 16-3-1995 on which duty had been paid and credit facility thereto has been availed of for the purpose of manufacture of further goods - appellant shall cooperate with the ld. adjudicating authority for verification of evidence relating to the claim of credit - Upon v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endent on 22nd August, 1997 for verification. He conducted verification and made appropriate endorsement on the bill of entry. He further says that the copy of the endorsement is verifiable from page 23 of the appeal folder. 5. Revenue s only grievance is that only photocopy was filed. 6. We have perused copy of the bill of entry. That conspicuously shows verification of the bill of entry made by officials of the Department. Therefore, on this count of dispute of disallowance of Modvat credit of Rs.5,71,878/-, appellant also succeeds. 7. The third count of submission is that the appellant when received the input, recorded the same in part 1 RG 23 A of the statutory record. It could not mention the credit in pat 2 of RG 23 A Register w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... denial of Cenvat credit, would cause prejudice interest of justice. Ld. Counsel has rightly relied on para 5 6 of the judgment of the Apex Court in the case of Eicher Motors (Supra). For convenience of reading the said paragraphs are extracted below:- 5.Rule 57F(4A) was introduced into the Rules pursuant to Budget for 1995-96 providing for lapsing of credit lying unutilised on 16-3-1995 with a manufacturer of tractors falling under Heading No. 87.01 or motor vehicles falling under Heading No. 87.02 and 87.04 or chassis of such tractors or such motor vehicles under Heading No. 87.06. However, credit taken on inputs which were lying in the factory on 16-3-1995 either as parts or contained in finished products lying in stock on 16-3-1995 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other product, the unutilised credit was getting accumulated. The stand of the assessees is that they have utilised the facility of paying excise duty on the inputs and carried the credit towards excise duty payable on the finished products. For the purpose of utilisation of the credit all vestitive facts or necessary incidents thereto have taken place prior to 16-3-1995 or utilisation of the finished products prior to 16-3-1995. Thus the assessees became entitled to take the credit of the input instantaneously once the input is received in the factory on the basis of the existing scheme. Now by application of Rule 57F(4A) credit attributable to inputs already used in the manufacture of the final products and the final products which ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of taxes. It is on the basis of the earlier scheme necessarily the taxes have to be adjusted and payment made complete. Any manner or mode of application of the said rule would result in affecting the rights of the assessees. 6. We may look at the matter from another angle. If on the inputs the assessee had already paid the taxes on the basis that when the goods are utilised in the manufacture of further products as inputs thereto then the tax on these goods gets adjusted which are finished subsequently. Thus a right accrued to the assessee on the date when they paid the tax on the raw materials or the inputs and that right would continue until the facility available thereto gets worked out or until those goods existed. Therefore, it be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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