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TMI Blog2017 (5) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... acts of the case are that the assessee-Appellants, during the period under consideration, were engaged in the manufacture of 'Kraft Paper' classifiable under Tariff sub-heading 4804.90 of the First Schedule to the Central Excise Tariff Act, 1985 and availed the Cenvat Credit on the inputs and capital goods in accordance with the provisions of the Central Credit Rules, 2002. The assessee-Appellants have claimed the benefit of duty exemption w.e.f. 23.02.2004 based on the area vide Notification No.49/2003-CE & 50/2003-CE dated 10.06.2003, but the same was denied. The Department opined that the assessee-Appellants were liable to reverse the Cenvat Credit on inputs and capital goods lying in stock. To this effect, a show cause notice was issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the assessee-Appellants submits that even on merits the claim of the assessee-Appellants is allowable as per the ratio laid down in the case of M/s Shree Krishna Paper Mills & Industries Ltd. Vs CCE, Jaipur, Final Order No.53948/2016 dated 05.10.2016 as well as in the case of The General Manager, Century Pulp & Paper Vs CCE, Meerut-II, Final Order No.50862-50864/2017 dated 15.02.2017. In the case of The General Manager, Century Pulp & Paper (supra), it was observed that : "8. After careful consideration of the facts of the case, the submissions of both the sides and the case laws cited, it appears that the issue is covered by the Hon'ble Uttrakhand High Court's decision in case of Apco Farm Ltd. 2015(319) ELT 64/(UK). The Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is available to the manufacturer without any limitation in time or otherwise unless the manufacturer itself chooses not to use the raw material in its excisable product. The credit is, therefore, indefeasible. It should also be noted that there is no co-relation of the raw material and the final product; that is to say, it is not as if credit can be taken only on a final product that is manufactured out of the particular raw material to which the credit is related. The credit may be taken against the excise duty on a final product manufactured on the very day that it becomes available." 14. ... 15. ... . . 21. In the light of the aforesaid, we are of the opinion that CENVAT credit which was validly availed at the time of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the final product is exempted from payment of tax, the assessee would not be entitled to avail the Cenvat credit on such inputs. But the Cenvat credit availed on such inputs till the date of exemption, vest in the assessee and the assessee cannot be divested of that credit as the law does not provide for the same. The Court further held that Revenue cannot take advantage of the notification exempting the final product and claim reversal of Cenvat credit either in respect of final product which have come into existence on the date of the notification or on the inputs stored in the godown or the work in progress and finished products. Significantly, SLP (Civil) CC 14763/2011, titled as Commissioner of Central Excise Bangalore V. M/s TAFE Li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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