9911796707
TMI Blog2005 (8) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... ri S.R. Dixit Advocate, for the Appellant. Shri R.K. Chandan, DR, for the Respondent. [Order]. - All the three appeals are being disposed of by a common order, as the issue involved in all the three is identical. 2. The appellants are engaged in the manufacture of Tooth Brushes falling under Chapter 96. In terms of Notification No. 10/02-C.E., dated 1-3-2002, the appellant was availing the concessional rate of duty of 8% ad valorem, subject to the condition that no credit of duty paid on the inputs and capital goods was being availed. However, the said condition was removed vide Notification No. 10/2003-C.E., dated 1-3-2003 and the appellants started availing the Cenvat credit of duty paid on the inputs and the capital goods. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r I find that the said Rule is not applicable inasmuch as sub-rule (1) of Rule 9 refers to any amount of credit earned by manufacturer under the Cenvat credit Rules 2001, as they existed prior to 1st day of March 2002 as remaining unutilized on that day shall be allowable as Cenvat credit to such manufacturer under these rules and be allowed to be utilized in accordance with these rules. Inasmuch as admittedly prior to 1-3-03, there was no credit earned by the appellant, the question of transfer of the same does not arise. Similarly sub-rule (2) of Rule 9 is applicable only where exemption notifications are based on value/quantity of clearance in a financial year. As such, I am of the view, that transitional provisions as contained under Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal product inasmuch as they continued to attract the same rate of duty. In this view of the matter, the benefit of Modvat credit in respect of inputs lying in stock as on 1-3-2003, when only one condition of the notification was deleted but the brushes continued availed the same exemption benefit, which was available to it prior to the said date, has been rightly denied to the appellants. The condition of not availing the Modvat credit was deleted with effect from 1-3-03 with the result that after the said date Modvat credit become available to the assesses in respect of inputs received on or after the said cut off date. Allowing of credit in respect of inputs in stock would amount to giving retrospective effect to Notification No. 10/03 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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