2007 (3) TMI 562 - AT - Central Excise

Summary

Issues involved: Interpretation of Cenvat Credit Rules, 2002 regarding utilization of credit for discharge of additional duty of excise.

Summary:

Issue 1: Utilization of Cenvat credit for discharge of additional duty of excise

The Revenue appealed against the Order of the Commissioner (Appeals) allowing the utilization of Cenvat credit for the discharge of additional duty of excise. The Revenue contended that the Cenvat credit available pertained to a period before 24-3-03, while the additional duty of excise liability was for a different period. On the other hand, the respondent argued that the amendment to Rule 3 of Cenvat Credit Rules, 2002 permitted the use of Cenvat credit for discharging the additional duty of excise liability as per Notification No. 18/2003-C.E. dated 13-3-2003. The Tribunal noted that the said notification brought amended Rules into force from 1-4-2003, allowing the discharge of additional duty of excise liability from the Cenvat Credit Account. Consequently, the Tribunal upheld the Commissioner (Appeals) decision, stating that there was no need for interference based on the settled legal position established by the subordinate legislation.

Decision:
The Revenue's appeal was dismissed, affirming the Commissioner (Appeals) order regarding the utilization of Cenvat credit for the discharge of additional duty of excise liability.