9911796707
TMI Blog2007 (11) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... ue filed this appeal against the impugned order whereby it is held that the respondents have correctly availed the benefit of Notification No. 35/2003, dated 10-4-2003. The appellants are engaged in the manufacture of man made fabrics and cotton fabrics and grey fabric is their input. With effect from 1-4-2003, vide Notification No. 6/2002 and 35/2003, deemed credit was allowed in respect of input and final product lying in stock. The respondents availed the deemed credit in respect of grey fabric lying in stock as per the notification. Show cause notice was issued on the ground that the appellants availed excess credit as respondents were earlier working under Notification No. 6/2002. The adjudicating authority dropped the proceedings. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing authority is not correct and legal as per the provisions explained above. 3. The Commissioner (Appeals) in the impugned order has held as under I have carefully gone through the case record, contentions made by the department in the appeal and the submissions made by the respondent, circular dated 1-4-2003, referred to by the respondent. I observe that goods on which cenvat credit has been availed are grey fabrics and were covered under Notification No. 6/2002-C.E. (N.T.), dated 1-3-2002. I also observe that Rule 9A(3)(b)(ii) of Cenvat Credit Rules, 2002 inter alia reads as follows, "the credit of duty on inputs contained in fabrics or garments lying in stock as on 31-3-2003 shall be calculated in the following manner, namely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment of India, Ministry of Finance and Company Affairs, to all Chief Commissioner, and Commissioners of Central Excise clarifying that credit of duty in respect of inputs as well as inputs contained in finished goods lying in stock on 31-3-2003 will be allowed if the declaration is made on or before 7th April, 2003. The rate at which the credit would be allowed will be separately notified shortly. As per this clarification, credit of duty on inputs and inputs contained in finished goods was allowed, and it was not allowed separately in Notification No. 6/2002-C.E. (N.T.), dated 1-3-2002. In view of the above facts, I find that the adjudicating authority has rightly held that the Notification No. 6/2002-C.E. (N.T.), dated 1-3-2002 canno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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