2007 (1) TMI 448 - AT - Central Excise

Summary

Issues: Interpretation of Rule 57F(8) regarding credit utilization for payment of duty on final products.

In the judgment delivered by Ms. Jyoti Balasundaram, the issue revolved around the interpretation of Rule 57F(8) concerning the utilization of credit for payment of duty on final products. The Commissioner of Central Excise (Appeals), Nagpur upheld a duty demand and imposed a penalty on the appellant, contending that they were not entitled to avail credit for payment of BED on clearances of final products after 31-3-1994, as per the provisions of Rule 57F(8).

The Rule in question states that the credit of Special duty of excise paid on inputs on or prior to February 28, 1993, may be utilized towards payment of duty on final products cleared between February 28, 1993, and March 31, 1994. The department argued that credit utilization should also be prior to March 31, 1994. However, the language of the Rule does not support the department's interpretation. The Rule specifies the period for clearance of final products but does not restrict credit utilization during that period, especially since the Rule was introduced in August 1993.

The judgment concluded that the credit was indeed admissible to the assessee for payment of duty on final products cleared after February 28, 1993, and before March 31, 1994. As a result, the impugned order was set aside, and the appeal was allowed.