Accumulated credit on 10.09.2004 can be utilized under transitional rule 11 of the new Cenvat credit rules, 2004
Brief of the case:
The CESTAT Mumbai in the case of Arbes Tools Pvt. Ltd. vs. CCEx held that as per Rule 11(1) of the Cenvat Credit Rules, 2004 read with Notification 23/2004-CE, the amount of credit earned by the manufacturer under Cenvat Credit Rules, 2002, which existed prior to 10.9.2004, can be utilized by them as per transitional rule 11 of the new Cenvat credit rules, 2004.
Facts of the case:
Contention of the Assessee:
Issue before the CESTAT:
Was assessee acted correctly by utilizing the accumulated credit as on 10th September,2004under the new Cenvat credit rules,2004?
Held by CESTAT Mumbai:
Tribunal take into the account the provisions of Rule 11 of the Cenvat Credit Rules,2004 which states that any amount of credit earned by a manufacturer under the CENVAT Credit Rules, 2002, as they existed prior to the 10th day of September, 2004 or by a provider of output service under the Service Tax Credit Rules, 2002, as they existed prior to the 10th day of September, 2004, and remaining unutilized on that day shall be allowed as CENVAT credit to such manufacturer or provider of output service under these rules, and be allowed to be utilized inaccordance with these rules.
Thus, the assessee correctly utilized the cenvat credit of Rs.32,820/- lying unutilized in their cenvat account in line with the provisions of Rule 11(1) of the Cenvat Credit Rules,2004.