2004 (2) TMI 572 - AT - Central Excise

Summary

Issues: Revenue's challenge to utilization of deemed credit balance by respondents as on 31st March, 1995.

The judgment deals with the appeal filed by the Revenue challenging the utilization of the balanced deemed credit by the respondents as on 31st March, 1995. The Revenue contested that the unutilized deemed credit standing with the respondents on the specified date lapsed and could not be used by them for discharging duty on final products thereafter. The Revenue's argument was based on the rescinded order by the Government withdrawing the facility of deemed Modvat credit from 1st April, 1995. However, both the authorities below rejected this argument. The Tribunal observed that the rescinded order did not explicitly prohibit the utilization of the deemed balance credit for discharging duty on final products post 1st April, 1995. The Tribunal held that the order only withdrew the facility of deemed credit without debarring its utilization for discharging duty on final products. Consequently, the Tribunal found no illegality in the Commissioner (Appeals) affirming the order-in-original allowing the respondents to use the balance deemed credit as on 31st March, 1995. As a result, the Tribunal dismissed the appeal filed by the Revenue for lack of merit.

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