Force Motors Ltd. Versus CGST & CE, Ujjain
Central Excise
2018 (6) TMI 786 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 14-6-2018
Appeal No. E/50962/2018-SM – Final Order No. 52241/2018
Central Excise
Hon'ble Mrs. Archana Wadhwa, Member ( Judicial )
Shri S.A. Gundecha, Advocate – for the appellant
Shri P. Junega, DR – for the respondent
ORDER
Per Archana Wadhwa
After hearing both the sides, I find that the appellant is engaged in the manufacture of motor vehicles and were availing the benefit of Cenvat credit of duty paid on various inputs.
2. Its so happened that during the period Jan. 2001 and Feb. 2001, the appellant received certain duty paid inputs which were duly entered in their records. As per the appellant, the credit could not be availed during the said period, immediately on receipt of the inputs but the same was availed in the month of March 2001. With effect from 1.3.2001, the provisions of Rule 57AB, which enabled the appellant to ava
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of the original adjudicating authority was upheld by Commissioner (Appeals) and hence the present appeal.
4. After hearing both the sides and after going through the impugned order, I find that the only reason with the Revenue to deny the credit is that the new amended provisions of 57AB, introduced with effect from 1.3.2001, allowed the credit of duty paid on the inputs received in the factory on or after 1.3.2001. Inasmuch as the inputs in question were received in Jan. and Feb. 2001, Revenue was of the view that the appellant would not be entitled to the credit.
I note that when the inputs were received in the assessee's factory in Jan. and Feb. 2001, they were admittedly entitled to avail the credit of duty paid thereon. Had they taken the credit in Jan. and Feb, itself, there would have been no objection by the Revenue. In fact, the said inputs were duly entered by them in their input records and it was only taking of credit which was deferred. As such, it can be seen that it i
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it of duty in respect of inputs received on or after 31.3.2000. Disputes arose in respect of inputs received prior to 31.3.2000 and it was clarified that inasmuch as an assessee has earned Modvat credit in respect of inputs received prior to 31.3.2000, he would be entitled to avail the Cenvat credit of duty paid on the same.
6. A logical interpretation of the provisions of Rule 57AB, as they existed before 1.3.2001 and after their amendment in 1.3.2001, leads me to conclude that an assessee cannot be denied the credit in respect of inputs received by him prior to 1.3.2001, especially when he was within his rights to avail the credit in respect of said inputs and could have availed the same immediately on receipt of the goods prior to 1.3.2001. As such, I find no merits in the Revenue's stand. Accordingly, the impugned orders are set aside and the appeal is allowed with consequential relief to the appellant.
( Dictated & pronounced in open Court )
Case laws, Decisions, Judgements,
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