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TMI Blog2016 (1) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... ing duty at the rate of 4%. By Notification No.10/03-CE dated 1.3.2003, the appellant was allowed to take cenvat credit but to pay duty at the rate of 8%. The appellant availed the benefit of Notification No.10/03-CE and paid duty on their final product at the rate of 8% and availed cenvat credit on the inputs lying unutilized in stock. Initially, the appellant intimated the department as they are willing to pay duty at rate of 8% in terms of Notification No.10/03-CE. Therefore, they would avail the cenvat credit on inputs/work in process lying in stock as on 1.3.2003, In February, 2004, reply was given by the department, therefore, the appellant took cenvat credit on inputs/work in process lying in stock as on 1.3.2003. A show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/3-CE dated 1.3.2003 to pay duty at the rate of 8% on their final product the credit availed on inputs and inputs contained in work in process finished goods lying in stock as on 1.3.2003 and (b) Whether the appellant is entitled to take credit within a reasonable time and what should be the reasonable time for availing the credit. As the issue No. (a) has been decided finally by this Tribunal in the case of Eastern Medikit Ltd. (supra) wherein the relevant facts of the case as under:- 3. The appellant was availing benefit of Notification No.10/2002-CE, dated 1-3-2002 and paying Central Excise duty @ 4% on the value of their final product without availing benefit of cenvat credit till 28-2-2003. Under that Notification an assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of the duty paid on inputs lying in stock or in process or inputs contained in the final products lying in stock on the date on which any goods manufactured by the said manufacturer or producer cease to be exempted or any goods become excisable." 14. Otherwise also the case of the appellant is squarely covered under Rule 3(1) of Cenvat Credit Rules, 2002 which provides that a manufacturer or producer of final product shall be allowed to take Cenvat credit of the excise duty paid on the inputs received in the factory on or after 1-3-2002 provided such inputs are used in the manufacture of the final product subject to excise duty. It is not the case of the revenue that the inputs in question were not duty paid or those were received in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that a manufacturer can avail cenvat credit in respect of certain inputs immediately on their receipt and there is no time limit period prescribed in these rules in this regard, The word may in sub-rule of Rule 4 cannot be read as shall. The Departments 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 Boards Circular No.345/2/2000-TRU dated 29.08.2000 in this regard which is reproduced below:- "10. Rule 57 AC 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 imm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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