2005 (8) TMI 458 - AT - Central Excise

Summary

Issues:
1. Availability of credit to the extent of 75% or 100% on imported CRCA sheets.
2. Time limit for taking credit on the basis of Bill of Entry.
3. Requirement of filing a separate refund application for a reversed amount.

Analysis:
1. The main issue in this case was the availability of credit on imported CRCA sheets to the extent of 75% or 100%. The appellants initially took credit for 75% of the duty paid due to confusion regarding the admissible percentage. Subsequently, it was clarified that 100% credit was permissible. The appellant then sought to avail the remaining 25% credit after the clarification. The Revenue objected, citing a six-month time limit for taking credit based on the Bill of Entry. The original adjudicating authority dropped the demand, but the Commissioner (Appeals) upheld the objection. However, considering relevant Tribunal decisions, the Appellate Tribunal allowed the appeal, stating that the restriction on the time limit did not apply since the original credit was taken within the stipulated period.

2. Regarding the time limit for taking credit based on the Bill of Entry, the Revenue contended that the appellant could not avail the remaining 25% credit after six months had passed from the date of the Bill of Entry. The appellant argued that since the original credit was taken within the time limit, the restriction should not apply to the balance credit. The Appellate Tribunal agreed with the appellant's argument, emphasizing that the restriction was not applicable in this scenario.

3. The final issue revolved around the requirement of filing a separate refund application for a reversed amount of Rs. 2,77,620/- due to an audit objection. The original adjudicating authority directed the appellant to file a separate refund application for this amount. However, the appellant, supported by Tribunal decisions, argued that a separate application was unnecessary as the reversal was due to an audit objection and both authorities had ruled in their favor on the merits. The Appellate Tribunal concurred with the appellant's stance and allowed the appeal with consequential relief, permitting the re-credit of the debited amount without the need for a separate refund application.