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TMI Blog2002 (10) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... s duty on goods cleared during the period 1-8-2000 to 15-8-2000. The department alleged that the appellants utilized excess Cenvat credit amounting to Rs. 40,98,661/- which was not, allegedly, available to them under the provisions of Rule 57AB(1) (b) of the Central Excise Rules, 1944. Therefore, by show-cause notice, the department sought to recover from them a duty amount of Rs. 40,98,661/- towards duty on the clearances for the period 1 to 15 August, 2000 as also to impose on them penalty under Rule 173Q(1) of the Central Excise Rules, 1944. The party denied the department's allegations and resisted the proposals for recovery of duty and imposition of penalty. The Commissioner of Central Excise, who adjudicated the dispute, confirmed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants had a vested right to take credit on the duty-paid inputs received during the first fortnight of a calander month and to utilize the same for payment of duty on final product cleared during that fortnight. That right could not be taken away by the Notification which was issued after that fortnight and after the credit was taken by making entry in RG-23A Part II. Counsel further submitted that, as the credit was lawfully taken, there was no valid reason for imposition of any penalty on the party under Rule 173Q(1). 4. Ld. SDR reiterated the cross-objections filed by the department, and further sought to rely on the Board's Circular No. 542/38/2000-CX, dated 25-8-2000. 5. We have examined the submissions. The appellants were liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proviso. Clause (b) of sub-rule (1) of Rule 57AB [as amended by Notification No. 48/2000-C.E. (N.T.)] reads as under :- "The Cenvat credit may be utilised for payment of any duty of excise on any final products manufactured by the manufacturer or for payment of duty on inputs or Capital goods themselves if such inputs are removed as such or after being partially processed or such capital goods are removed as such : Provided that while paying duty in the manner specified under sub-rule (1) of Rule 49 or sub-rule (1) of Rule 173G, as the case may be, the Cenvat credit shall be utilised only to the extent such credit is available on the fifteenth day of a month for payment of duty relating to the first fortnight of the month, and the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty from the Cenvat Credit Account maintained by the assessee cannot exceed the balance at the last day of the month." 7. The above clarification cannot be relied on to contend that Cenvat credit on inputs received during the first fortnight of a calander month, taken in RG-23A Part-II on the 16th day of the month, would not be available for utilisation on the 20th day of the month (the last day prescribed for payment of duty for the said fortnight) for utilisation in payment of duty on final products cleared during the said fortnight. The Board's clarification is only to the effect that the credit available cannot extend to inputs received beyond the fortnight. In the instant case, the inputs were admittedly received in the first fortn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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