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TMI Blog2020 (3) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... g and entries in the cenvat register, that the dispute has arisen. Even though, in the entries made under Part-I with regard to account of inputs, the entries made showing the date is within six months, but in Part-II the entry number showing the date is beyond six months, and it is only because of this entry made in Part-II that modvat credit has been denied to assessee. The High Court further observed that in EICHER MOTORS LTD. VERSUS UNION OF INDIA [ 1999 (1) TMI 34 - SUPREME COURT] , the Hon ble Supreme Court has held that the provisions for facility of credit granted to an assessee is a right accrued to the assessee on the date when they paid the tax on the raw material or the inputs and this right would continue until the facilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 2004, which is as follows:- Provided also that the manufacturer or the provider of output service shall not take cenvat credit after six months of the date of issue of any of the documents specified in sub-rule (1) of Rule 9 . Thus, it appeared that in respect of invoices during the period June, 2012 to June, 2014, the aggregate credit of ₹ 10.19 lakhs was disallowed, vide show cause notice dated 31.10.2016, invoking the extended period of limitation. The show cause notice was adjudicated on contest and the proposed amount was disallowed with equal amount of penalty under Rule 15 of Cenvat Credit Rules read with Section 11AC of the Central Excise Act. Being aggrieved, the appellant preferred appeal before the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch receipt of the inputs in Part-I of the single comprehensive RG-23A account, evidences such crystallization of the right to Modvat credit in favour of assessee and thus amounts to taking of the credit as envisaged in the Scheme or only the second (accounting) entry in the Part-II of the same RG-23A Account, only constitutes the act of availment of right to the already accrued credit? (iii) Whether the credit held by the CEGAT in para 5 of the final order to have been accrued to the applicant can be denied in law by CEGAT simultaneously holding it to be inadmissible. 5. The Hon ble High Court, wherein the facts were similar and the disallowance was upheld by this Tribunal under Rule 57(i) of Central Excise Rules, 1944, the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing the ruling of the Hon ble Apex Court, as followed by M. P. High Court, I hold that the right to cenvat credit accrues on the date when the goods or service in question is received by an assessee, and such right cannot be modified just for making accounting entry in the other books or Part-II of the cenvat credit register (RG-23A). 9. Accordingly, I uphold cenvat credit availed by the appellant. Moreover the provision is prospective, and the limitation has to be calculated w.e.f. the date modification was made in the Cenvat Credit Rules. Accordingly, the impugned order is modified to the extent it has disallowed cenvat credit to the appellant. The appellant is held entitled to the cenvat credit. The appeal is allowed accordingly, wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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