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TMI Blog2016 (8) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... [DB] - Final Order No. 51215/2016 - Dated:- 2-3-2016 - MR. S.K. MOHANTY, MEMBER (JUDICIAL) AND MR. R.K. SINGH, MEMBER (TECHNICAL) For the Appellant : Shri.Kapil Vaish, C.A. For the Respondent: Shri.R.K. Grover, D.R. ORDER PER: R.K. SINGH This appeal has been filed against Order-in-Appeal dated 22.02.2007 which upheld the Order-in-Original dated 31.07.2006 in terms of which the appellant s refund claim of ₹ 42,66,887/- was rejected. The facts of the case are as under:- 2. The appellant had taken cenvat credit on capital goods and inputs at the time when its final production had been cleared on payment of duty. It started clearing goods at nil rate of duty w.e.f. 26.09.2003 availing benefit of Exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in 2015 (320) E.L.T. 357 (Mad.) the Madras High Court essentially held that credit of duty paid on inputs lying in stock or contained in finished Tractors lying in stock as on date of exemption coming into force is not required to be reversed. In para 15 and 16 of the judgment of Hon ble High Court observed as under:- 15. At this juncture, the Tribunal in Ashok Iron and Steel Fabricators case, referred supra as well as the decision of the Bangalore Bench of the Tribunal in the assessees own case have emphasized over and over again on para 17 of the decision of in Dai Ichi Karkaria Ltd. case, referred supra, which has very clearly set out the position as to how the credit taken on inputs should be utilized. To sum up, paragraph 17 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w material and the final product is required, the appellant s plea stands answered. If credit can be taken against excise duty on a final product manufactured on the very day, it makes it abundantly clear that there need not be co-relation between the input and the goods cleared and as a result, validly taken credit need not be reversed. The Central Excise Rules would come into play in the following manner, that is to say, on the date when the final goods become exempt from payment of duty, for the inputs received on and after the said date, no credit can be taken. This would be the correct method of understanding of the position of law. 5. In the light of the foregoing analysis and in the wake of the judicial pronouncement cited above, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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