M/s STANADYNE AMALGAMATIONS PVT LTD & M/s AVO CARBON INDIA PVT LTD Vs COMMISSIONER OF CENTRAL EXCISE, CHENNAI: 06.08.2019 - Central Excise - At the time of De-bonding, the appellant-assessee paid appropriate Duty and Countervailing Duty on raw materials lying in Stock and capital goods on depreciated value - whether such duties paid by the Assessee upon De-bonding can be availed as Cenvat Credit under Rule 3(1) of CCR, 2004 against its Output Duty liability - legal proposition to interpret a later on inserted Proviso in an enactment – HELD - the benefit of Cenvat Credit was entitled to be allowed in respect of all the Duties including Excise Duty, Educational Cess, Countervailing Duty paid by the assessee on De-bonding - The whole of the Rule 3(1) is the enabling provision for giving such Cenvat Credit and the Proviso therein inserted later on by Notification No.35 of 2008 dated 24.9.2008 cannot be said to be a standalone enabling power to provide such Cenvat Credit to the Assessee. Such a novel and out of context interpretation of the said Proviso is not only not happily worded, but also, placed at the wrong place in Rule 3(1), cannot be accepted to defeat the very purpose of Rule 3(1) upon an 100% EOU, when converted upon De-bonding to a DTA - insertion of Proviso in Rule 3 of CCR, 2004 is more in the nature of an Explanation clarifying what was in doubt earlier viz., about allowing of Cenvat Credit in respect of capital goods earlier. The allowing of Cenvat Credit on raw material was never in doubt whether on de-bonding or otherwise on procurement of raw material. Rule 3 does not make any such distinction - the ld. Tribunal has erred in denying such benefit of Cenvat Credit to the assessee - the impugned order are set aside and assessee appeal is allowed

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