2010 (10) TMI 1133 - HC - Central Excise

Summary

Issues involved: Interpretation of Cenvat Credit Rules, 2002 regarding refund of unutilized credit of Additional duty of Excise (Goods of Special Importance) and Additional duty of Excise (Textile and Textile Articles).

The High Court of Bombay, in the case, considered the questions of law regarding the applicability of Board's Circular No.701/17/2003-CX dated 12/3/2003 to the refund of unutilized credit of Additional duty of Excise (Goods of Special Importance) and Additional duty of Excise (Textile and Textile Articles). The Court analyzed whether the statutory provisions of Rule 3(6)(b) of Cenvat Credit Rules, 2002, allowing utilization of AED (GSI) for payment of Cenvat duty, impact the refund of unutilized credit of Additional duty of Excise (TTA). The Court also examined whether the refund of unutilized credit of Additional duty of Excise (TTA) is admissible under Rule 5 of Cenvat Credit Rules, 2002, especially in cases where such credit was accumulated due to full exemption from payment of Additional duty of excise (TTA) on finished goods.

The Court noted that the revenue, represented by Shri Mokadam, acknowledged that a similar appeal filed by the revenue had been dismissed previously by the Court in a related case. Citing the precedent set in Commissioner of Central Excise, Thane-II vs. D.C. Polyester Pvt. Ltd., the Court dismissed the present appeal. The Court made it clear that no costs were to be awarded in this matter.