2005 (11) TMI 268 - AT - Central Excise

Summary

Issues: Interpretation of Rule 57F 17(D) regarding lapse of duty credit and its utilization for payment of duty.

Analysis:
1. The issue in this case revolves around the interpretation of Rule 57F 17(D) concerning the lapse of duty credit and its utilization for payment of duty. The Commissioner of Appeal's order was challenged on the grounds that once the credit of duty has lapsed, the respondents are not entitled to use it for duty payment.

2. The learned D.R. argued that the Commissioner of Appeal's decision was incorrect. The show cause notice was issued to the respondents for utilizing the Modvat credit available in their records as of 1-8-1997. The notice was issued under Rule 57F 17(D), which specified the lapse of credit for certain manufacturers of hot re-rolled products of non-alloy steel under specific headings of the Central Excise Tariff Act, 1985. The Commissioner of Appeal correctly interpreted the rule, stating that it applied to manufacturers liable to pay duty under Section 3A as of 1-8-1997. As the appellants became liable to pay duty under Section 3A from 1-9-97, the rule was not applicable to them.

3. The Commissioner of Appeal's decision was found to be in accordance with the law, as the duty payable under Section 3A was effective from 1-9-97. The appellants did not challenge this finding in their appeal. Since there was no challenge to the Commissioner of Appeal's findings, the appeal of the Revenue was dismissed. The judgment concluded with the pronouncement of the dismissal of the appeal in open court.