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TMI Blog2018 (6) TMI 1664X X X X Extracts X X X X X X X X Extracts X X X X ..... r manufacturing the final product, the credit though available cannot be utilised and used against the final product manufactured by the same assessee. This Court, therefore, does not find that the CENVAT credit available to the petitioner can be used and utilised or adjusted against the final product, when the goods over which the petitioner has paid the excise duty, is not used as raw material or input therefor. Petition disposed off. X X X X Extracts X X X X X X X X Extracts X X X X ..... dit, which he availed of after re-imposition of the excise duty. Both the writ petition came up together before a Co-ordinate Bench and so far as the first writ petition was concerned, this Court held that the petitioner is not entitled to get refund of the credit in cash. The Co- ordinate Bench relied upon a decision of another Co- ordinate Bench in case of Kusum Products Ltd. vs. Union of India reported in 2003 (157) ELT 258 (Cal.), wherein identical point arose and the Court took note of a Notification No. 45/89, which prohibited the credit amount to be refunded to the manufacturer or adjusted or utilised for payment of duty on any excisable goods under any other circumstances. In view of the categorical decision of the earlier Co-ordina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit shall be taken only in respect of quantity of oil subject to hydrogenation on or after 11th October, 1989 for the manufacture of the said final products of the credit shall be taken only on the date on which the oils has been so hydrogenated. (i) The credit taken during any calendar month shall be utilised for payment of duty on the said final products only after commencing of the succeeding month. (Emphasis supplied) (i) The quantity of credit utilised for payment of duty of any individual clearance of the said final products shall not exceed one thousand per tonne of vegetable products cleared and the excess credit if any available in the credit amount shall not be refunded to the manufacturer or adjusted against or utilised fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilised the same for manufacturing an intermediate product, which was again used for the purpose of manufacturing final product. Both the raw materials and intermediate products attracts the excise duty and are included in the category of specified goods for the purpose of MODVAT scheme. The question, which arose in the said Report was whether the part of the cost of the raw material is the price paid by the manufacturer to its seller or whether the price of the raw material is to be lessened by the excise duty, which has been paid by the seller and, therefore, the manufacturer is entitled to credit under the said scheme. The Court found that the intermediate product was manufactured by using the raw material and both such products attract e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o relation, nexus or connection with the utilisation of raw material, for which the petitioner has paid the excise duty. The broad question, which arises in the instant writ petition, is whether such credit can be availed by the petitioner through an unconnected final product. The answer can be traced from the Notification No. 45/89 dated 11th October, 1989, wherein prohibition has been incorporated that the credit amount shall neither be refunded to the manufacturer nor adjusted against or utilised for payment of duty on any excisable goods under any other circumstances. The goods, which do not constitute a raw material and not used as input for manufacturing the final product, the credit though available cannot be utilised and used agains ..... X X X X Extracts X X X X X X X X Extracts X X X X
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