The main legal point established in the judgment is that the amended rule cannot be applied retrospectively to affect vested rights, as interpreted in the decision of the Supreme Court in Samtel India Limited's case.

( 1 ) PETITIONER-M/s. Grasim Industries Limited, Unit: Rajashree Cement, is seeking to quash the circular dated 31-3-2003 in No. 704/20/2003 issued by the first respondent in terms of Annexure-B and to direct the second respondent and his officers to permit the petitioner to avail back the cenvat Credit of Rs. 3,41,965. 00 on the stock of light diesel oil ('ldo' for short) as on 28-2-2003.

( 2 ) PETITIONER is engaged in the manufacture of cement at its plant located at adityanagar, Malkhed Road, Gulbarga District. Petitioner is having thermal power plant and diesel generating sets. In the diesel generating sets, petitioner is using LDO. Petitioner has been availing credit on the said LDO as an input under the CENVAT Credit Rules, 2002. Petitioner was availing credit on the said LDO as an eligible input. Rule 2 (g) of the CENVAT Credit Rules ("the rules" for short) amended to exclude LDO as an input and in Explanation (1), ldo has been included in terms of Notification No. 13/2003, dated 1-3-2003. Annexure-A is the notification. The Board thereafter issued a circular in terms of Annexure-B. Thereafter, respondent 2 by his letter dated 23-4-2003 directed the petitioner to reverse CENVAT Credit of Rs. 3,41,965. 00 in terms of the Board's Circular. Petitioner reversed the said credit under protest. Petitioner with these facts is before me seeking for various prayers.

( 3 ) RESPONDENTS have entered appearance. Second respondent has filed a statement of objections. They justify their stand in the matter. According to them, the oil lying in stock as on 28-2-2003 required to be reversed in terms of the notification dated 1-3-2003.

( 4 ) SMT. Rukmini Menon, learned Counsel appearing for the petitioner argues before me that a vested right is being withdrawn in terms of the impugned circular by the respondents. She says that the goods which were brought to the factory earlier to 1-3-2003 are entitled for the benefits in terms of the CENVAT Credit Scheme. She strongly relies on a judgment of the supreme Court in Samtel India Limited v Commissioner of Central Excise, jaipur. Sri Bhaskar, learned Central Government Standing Counsel appearing respondents would state that the said submission made on behalf of the petitioner is not available in the light of the amended Rules read with the circular in terms of Annexure-B.

( 5 ) AFTER hearing the learned Counsels on either side, I have carefully perused the material on record. Rule 2 (g) of the Rules initially defined "input" as follows: " (g) "input" means all goods, except high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final tin oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or generation of electricity or steam used for manufacture of final products or for any other purpose, within the factory of production. Explanation 1. The high speed diesel oil or motor spirit commonly known as pertrol, shall not be treated as an input for any purpose whatsoever". The said rule has been amended in terms of Annexure-A. In terms of the amended rule, in Explanation 1, for the words "the high speed diesel oil", the words "the light diesel oil, high speed oil" were substituted. Amended Rule has come into force on 1 -3-2003. Respondents thereafter have chosen to issue a circular in terms of Annexure-B. In Annexure-B it is stated that, if any cen VAT Credit had been availed, in terms of Rule 3 of the aforesaid Rule on ldo, lying in stock on 28-2-2003, same is required to be reversed by the assessee. This is challenged in the case on hand.

( 6 ) PETITIONER admittedly has cleared his goods by availing the benefits in terms of the unamended rule which included LDO. Amended rule including ldo has come into force on 1-3-2003. LDO lying in stock as on 28-2-2003 has alre