2007 (3) TMI 561 - AT - Central Excise

Summary

Issues:
1. Interpretation of CENVAT Credit Rules regarding the utilization of credit for discharging additional duty of excise liability.

Analysis:
The appeal before the Appellate Tribunal, Kolkata stemmed from a disagreement with the Order of the Commissioner (Appeals) regarding the utilization of CENVAT Credit for discharging additional duty of excise liability. The Revenue contended that the Commissioner erred in allowing such utilization since the CENVAT Credit available pertained to a period before 24-3-03, while the excise liability was discharged for a subsequent period from November 2003 to January 2004.

The respondent, represented by Shri S.K. Roy Chowdhury, highlighted the amendment to Rule 3 of the CENVAT Credit Rules, 2002, which allowed for the discharge of additional duty of excise liability in accordance with Notification No. 18/2003-CE dated 13-3-2003. It was argued that the statutory amendment enabled the utilization of CENVAT Credit as on 1-4-2003 to discharge the liability, as specified in sub-rule (3) of Rule 3 of the CENVAT Credit Rules, 2002.

Upon hearing arguments from the DR for the Revenue and Shri S.K. Roy Chowdhury, the Tribunal acknowledged that Notification No. 18/2003-CE dated 13-3-2003 brought the amended Rules into effect from 1-4-2003. Subsequently, sub-rule (3) of Rule 3 of the CENVAT Credit Rules, 2002 permitted an assessee to discharge the additional duty of excise liability from the CENVAT Credit Account. Given the clarity provided by the subordinate legislation, the Tribunal found no grounds to interfere with the decision of the first Appellate Order.

Conclusively, the Tribunal dismissed the Revenue's appeal, affirming the validity of utilizing CENVAT Credit for discharging the additional duty of excise liability as per the amended Rules. The judgment was dictated and pronounced in open court, settling the matter in favor of the respondent.