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TMI Blog2015 (10) TMI 1556X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. Vs. CCE, Meerut-II [2015 (10) TMI 984 - CESTAT NEW DELHI], a similar issue came up before this Tribunal, wherein the appellant were manufacturer of electric bulbs and procuring inputs,capital goods and availing cenvat credit thereon. Thereafter they opted for availing exemption under notification no.50/2003-CE i.e. the area based exemption. Revenue is of the view that as the appellant have opted for exemption from duty, therefore, on the day for opting for exemption, whatever input/ inputs contained in work-in-progress and final product, the appellant is required to reverse the cenvat credit. - at the time when appellant took cenvat credit on inputs, their final product was dutiable and later on, they opted for availing benefit of conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the case are that the main appellant is manufacturer of ceramic glazed tiles and unglazed Ceramic Vitrified Porcelain Tiles, which are chargeable to duty under Section 4 A in terms of Notification No.13/2002-CE (NT) dated 1.3.2002. The appellant claimed concessional rate of duty as per notification no.6/2002-CE dated 1.3.2002 as amended by notification no.45/2003 dated 14.05.2002 as amended by notification no.60/2003-CE dated 29.07.2003 at sl.no.275 for availing exemption w.e.f. 7.8.2003. The Departmental Officers visited the factory of the appellant on 27.08.2003 and found that the appellant has not reversed the cenvat credit availed on inputs lying in stock/inputs contained in the work in progress/inputs contained in the final produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied on the decision of the Hon'ble High Court of Himachal Pradesh in the case of CCE, Chandigarh Vs. Saboo Alloys Pvt. Ltd. reported in 2010 (249) ELT 519 (HP) . 5. On the other hand, ld. Authorised Representative supported the impugned order. 6. Heard the parties. Considered the submissions. 7. In this case, short issue before us is that whether a manufacturer is required to reverse the cenvat credit taken by him in respect of the inputs which are proved to have been used in manufacture of the goods which are liable to concessional rate of duty in view of the Notification no.60/2003-CE dated 29.07.03, which provides that no credit taken in respect of the inputs which are used in manufacture of the final products on which b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to contingency existing at the time of removal does not affect the entitlement that legally arises long before that date. 12. We are in respectful agreement with the judgment of the Kerala and Rajasthan High Courts. Since the language of Rule 9(2) of the Cenvat Rules is identical to that of Rule 57H(5) of the Excise Rules, we feel that the interpretation given by the Apex Court has to apply in the present case also and, therefore, even though the final product may be exempt from payment of excise, the assessee cannot be asked to reverse the Modvat credit already taken by it. 8. We also find that in the case of Surya Roshini Ltd. Vs. CCE, Meerut-II vide Final Order No.52146/2015-EX(DB) dated 6.7.2015 , a similar issue came up bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer, that is to say, that the Cenvat Credit is required to be taken on receipt of the inputs and not at the time when the final product is manufactured. All that the Department is required to ensure is, that the Cenvat Credit taken by the assessee at the time of the receipt of the inputs is for the manufacture of the final product, on which excise duty is payable. If the excisable duty is withdrawn subsequently, or the final product becomes exempted from payment of excise duty by means of a notification, the Cenvat Credit so taken and utilized cannot be reversed nor can the Department insist that the Cenvat Credit should be reversed in view of Rule 6(1) of the Rules of 2002. 9. This Tribunal also observed as under:- After goi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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