Cenvat Credit – To avail credit lawfully, raw material, on which same is sought to be availed, must be utilized in manufacture of final dutiable product and credit earned thereon should also be utilized for payment of duty on final product

Till and until both the credit earned and the product on which the credit is earned are lawfully utilized, it cannot be said that the credit has been lawfully and completely utilized; of course, the utilization of credit and utilization of input may not necessarily be in relation to one and the same final product; it can be in relation to two different dutiable final products.

CASE LAWS DETAILS

DECIDED BY: CESTAT, PRINCIPAL BENCH, NEW DELHI, IN THE CASE OF: Ranbaxy Laboratories Ltd. Vs. Commissioner of Central Excise, APPEAL NO: Excise Appeal No. 282 of 2007, DECIDED ON April 30, 2010

FACTS

The appellants are engaged in manufacture of medicament classifiable ; under Chapter 29 and 30 of the First Schedule of the Central Excise Tariff Act, 1985, having their unit located in the state of Himachal Pradesh. The appellants undertook expansion programme at their factory in order to avail benefit of the exemption of duty liability on the finished goods under Notification No. 50/2003-CE dated 10.06.2003 and, therefore, filed their declaration in that regard on 10.01.2005. and on that day the appellants had with them some of the inputs in stock, which were procured prior to that day, and they were either lying in the store or contained in the goods in the / manufacturing process or contained in the finished goods in stock.

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