2007 (9) TMI 661 - AT - Central Excise

Summary

Issues Involved: Whether the appellants are eligible to avail the credit of duty on goods procured on lease.

Summary:

Issue 1: Eligibility of credit on leased goods

The appeal was filed by the revenue against the order-in-original, which held that the appellants had availed premature credit of Rs. 3.14 crores and imposed a penalty of Rs. 25 lakhs. However, the demand of approximately Rs. 10 crores was set aside. The main contention was whether the credit could be availed by the appellants for goods procured on lease. The revenue argued that the credit could only be availed after payment of the entire duty to the lease company. The Tribunal, in the respondent's own case, set aside the impugned order on grounds of limitation and merits. As the issue was already decided in favor of the respondent in their own appeal against the same order-in-original, the appeal filed by the revenue was dismissed.