SHREE RAJASTHAN TEXCHEM LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) THIS writ petition is directed against a show cause notice issued by the Assistant Commissioner, Central Excise Division, Udaipur dated 18 -6 -2003 proposing to withdraw the Cenvat Credit Facility availed by the petitioner on the Light Diesel Oil received on or before 28 -2 -2003 and forming part of stock on 28 -2 -2003 on the basis of law standing as on the date, in terms of Rule 4(1) of Cenvat Rules, 2002, on the ground that since Rule 2(g) has been amended w.e.f. 1 -3 -2003 by which Cenvat Credit Facility has been withdrawn from Light Diesel Oil w.e.f. 1 -3 -2003.

(3.) WHILE Rule 3 of Cenvat Credit Rules, 2002 (in short Cenvat Rules) enabled a manufacturer or purchaser of final product to take Cenvat credit of the Duty of Excise paid on any input or capital goods and that Cenvat credit can be utilised for payment of Duty of Excise on any final product, Rule 4(1) of the Rules of 2002 envisaged time or stage at which the manufacturer or purchaser becomes entitled to take the credit of cenvat to be utilised in future for payment of Duty of Excise on final product. Rule 4(1) of the Cenvat Rules reads :