2010 (3) TMI 1069 - HC - Central Excise

Whether the Hon ble CEGAT is correct in extending the deemed credit benefit to a unit availing of the exemption in terms of N/N. 1/93-C.E. dated 28-2-93 even after crossing the value of clearance of Rs. 75 lakhs when a unit pays full rate of duty? Held that - similar issue decided in the case of Sood Steel Industrial (P) Ltd. v. Commissioner of Central Excise 2009 (4) TMI 62 - HIMACHAL PRADESH HIGH COURT wherein the Division Bench of Himachal Pradesh High Court has held that the manufacturer would be entitled to claim excess amount from payment of duty upto Rs. 75 lacs and thereafter upto Rs. 2 crores and they are entitled to avail the deemed credit without production of documents - appeal dismissed - decided against Revenue.

Summary

The Punjab and Haryana High Court ruled in favor of the assessee, stating that a unit availing exemption under Notification No. 1/93-C.E. can still receive deemed credit benefit even after crossing the clearance value of Rs. 75 lakhs when paying full duty. This decision was based on a similar ruling by the Himachal Pradesh High Court in the Sood Steel Industrial (P) Ltd. case.