9911796707
TMI Blog2010 (10) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... As such the impugned order is maintainable - credit available on inputs used in the manufacture of the final product is the credit of duty paid on such inputs. However the government from time to time, keeping in view the difficulties faced by the industry as regards production of documents, allow such credit on the basis of deeming provisions, as if the duty stands paid on the inputs so utilized - appeal rejected - decided against Revenue. - E/1899/2009 - Final Order No. A/1790/2010-WZB/AHD - Dated:- 15-10-2010 - Ms. Archana Wadhwa, Member (J) Shri J.S. Negi, SDR, for the Appellant. Shri Devan Parikh, Advocate, for the Respondent. ORDER Being aggrieved with the order passed by Commissioner (Appeals) Revenue has filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed the appeal and directed the appellants to file an indemnity bond before the lower authority, indemnifying the Revenue from any loss which may occur on account of their merchant exporter claiming any duty drawback on part of credit which has been claimed by the appellant as cash refund in the present case. In view of the O-I-A dated 4-2-2003, the refund for ₹ 7,67,865/- was sanctioned and ₹ 72,855/- was rejected vide O-I-O No. 144/2003/DC/Ref. dated 9-9-2003. On receipt of the refund the appellant debited the same amount from the deemed credit register. 4. The O-I-A dated 4-2-2003 was appealed against in the CESTAT and hence as a protective measure to safeguard Govt. Revenue as in the event of Tribunal decision in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the credit in Cenvat account which was earlier debited from the deemed credit register, the appellant was issued show cause notice vide letter F. No. V. 52(3-32)DA/07, dated 25-2-2008 for contravention of the provisions of Rule 3(1) of Cenvat Credit Rules, 2004 in as much as the appellant had taken credit of the deemed credit in the Cenvat credit account; Rule 9 of the Cenvat Credit Rules, 2004 in as much as the appellant had not taken credit on the basis of invoices issued under Rule 11 of Central Excise Rules, 2002 and thus proposed for recovery of the said amount under Section 11A of Central Excise Act, 1944 along with interest under Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AB of the Central Excise Act, 1944. Penalty u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intimating the department the jurisdictional Assistant Commissioner vide their letter acknowledged on 2nd March 2007. The availment of this credit entry in Cenvat credit account register is objected and the appellant was denied the same on the ground that the Cenvat credit is admissible only after following the procedure laid down under Rule 3(1) and Rule 11 of Cenvat Credit Rules, 2004. I find that these provisions are not applicable as the said rules are applicable in case of input received under duty paying documents on or after operation of Cenvat Credit Rules, 2004 which were made operative vide Notification No. 23/2004-C.E., (N.T.) dated 10-9-2004. There is no rule under Cenvat Credit Rules, 2002 Cenvat Credit Rules, 2004 which p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h on rescinding of the deemed credit scheme, the same would get lapsed. The respondents should not have taken the credit of the same in their Cenvat credit account. 9. I find no merits in the above contention of the Revenue. The credit available on inputs used in the manufacture of the final product is the credit of duty paid on such inputs. However the government from time to time, keeping in view the difficulties faced by the industry as regards production of documents, allow such credit on the basis of deeming provisions, as if the duty stands paid on the inputs so utilized. This fact by itself will not make deemed modvat credit different from the modvat credit. In essence they are the same and are entered in the same register. There ..... X X X X Extracts X X X X X X X X Extracts X X X X
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