9911796707
TMI Blog2017 (3) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/2001 C.E. (N.T.) dated 1-3-2001 as amended by notification No. 17/2001-C.E.(N.T.) dated 30-4-2001 during the period 1-5-2001 to 30-6-2001. II. Rule 11 of Cenvat Credit Rules, 2001 read with Notification No. 53/2001-C.E. (N.T.) dated 29-6-2001 during the period 1-7-2001 to 28-2-2002. Inasmuch as during the period 1-5-2001 to 30-6-2001, the appellant availed inadmissible deemed credit in respect of clearances of the old stock of processed fabrics lying with them as on 30-4-2001 on ad valorem basis amounting to Rs. 5,12,848/-. The appellant was not eligible for availing Cenvat credit as per Para 4A of the notification No. 07/2001-C.E.(N.T.) as amended by Notification No. 17/2001-C.E. (N.T.) by reason of their availing special procedure pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n payment of duty on advaloram basis for the reason that the special procedure prescribed under Rule 96ZNA to 96ZND of Central Excise Rules, 1944 was not applicable to the goods manufactured on or before 1-5-2001. The deemed credit provisions is not applicable only in respect of goods manufactured and cleared after 1-5-2001 therefore the goods lying in stock as on 30-4-2001 deemed Cenvat credit was clearly admissible. In support of his submission, he placed reliance on following judgments: (a) Commissioner of C. Ex. & Cus. Vs. Bidhata Industries Pvt Ltd[2010(251)ELT 40(Bom)] (b) Unique Processors Vs. Commissioner of Central Excise, Thane-I[2015(320) ELT 634 (Tri. Mumbai)] 3. On the other hand, Shri. Sanjay Hasija, Ld. Superintendent(A.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions, considering the facts of the case, appellant availed deemed Cenvat credit only in respect of these goods which were manufactured on or before 1st May, 2001 and cleared thereafter. Therefore the provisions of 96ZNB is not applicable to these goods which were manufactured prior to 1-5-2001. The deemed credit is not applicable only in respect of these goods which are manufactured and cleared by availing special procedure under Section 96ZNC therefore in the present case the goods were cleared not under Rule 96ZNC, hence, the deemed credit availed by the appellant cannot be denied. The issue in the present case is squarely covered by Hon'ble Bombay High Court judgment in case of Bidhata Industries Pvt Ltd(supra) wherein Hon'ble High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods which are manufactured or produced prior to the 1st day of May, 2001 and cleared on or after that date."; 4. Another Notification came to be issued on 30th April, 2001. This was to amend Notification notified on 1st March, 2001 which we have referred to earlier. By this Notification after paragraph 4 Para 4A was inserted in Notification of 1st March, 2001 and the same reads as under :- "4A. The provisions of this notification shall not apply to a manufacturer who avails of the special procedure prescribed under Rule 96ZNA and pays the specified sum of duty in accordance with a notification issued under Rule 96ZNC of the Central Excise Rules, 1944." 5. It will thus be clear that Rule 96ZNB provided that goods manufactured between 1st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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