2004 (10) TMI 443 - AT - Central Excise

Summary

Issues:
- Whether credit of Additional Duty of Excise can be utilized towards payment of duty of excise leviable under Central Excise Tariff.

Analysis:
The Revenue filed appeals against the Order-in-Appeal allowing the appellant's appeal, arguing that credit of Additional Duty of Excise under Section 3 of the Act cannot be used for Central Excise Tariff duty payment. The respondent contended that during the dispute period, there was no restriction on using excise duty credit from the additional duty. Referring to a previous Tribunal decision and the Finance Act 2004, the respondent highlighted that retrospective amendments allowed such credit utilization. The Tribunal had ruled in favor of the respondent in a prior case, and the Finance Act 2004 introduced amendments to the Cenvat Credit Rules, 2002, enabling such credit utilization retrospectively.

The Finance Act 2004 amended the Cenvat Credit Rules, 2002, allowing credit of additional duty of excise towards payment of duty under the Central Excise Tariff Act. This amendment had retrospective effect from March 1, 2003. The Tribunal, considering the previous ruling and the legislative changes, found no merit in the appeals and dismissed them. The judgment upheld the respondent's position based on the Tribunal's earlier decision and the subsequent legislative amendment, allowing the utilization of credit for the duty payment under the Central Excise Tariff Act.