2019 (11) TMI 781 - AT - Central Excise

CENVAT Credit - Styrene Monomer and Acrylonitrite - Target Plus Scheme - credit was challenged by the Revenue on the ground that since Target Plus scheme is discontinued with effect from 01.04.2006, benefit of such scheme was not available - HELD THAT - Revenue has essentially related the observation that since the Target Plus scheme was abolished, the certificates issued during the currency of the said scheme cannot be used thereafter. It is seen that utilization of certificates issued under Target Plus scheme is a matter which falls under the jurisdiction of Customs Authority and not under Central Excise authorities. The Customs authorities have allowed the certificates issued under Target Plus scheme and no demand of duty has been raised by the customs authorities in respect of such imports. Notification No. 73/2006-Cus has been issued after withdrawal of Target Plus scheme which permits utilization of duty credit certificates issued under the scheme on the basis of incremental growth of FOB value of exports made during the year 2005-06. The said certificates were issued after abolition of Target Plus scheme. The said certificates have even been issued in August 2007 and February 2008, then respondent could not have used the certificate after abolition of scheme does not have any force. Moreover, Notification No. 32/2005-Cus is continue even after abolition of Target Plus scheme under condition No. 7 clearly permits availment credit of addition duty paid. Appeal dismissed - decided against Revenue.

Summary

Issues:
1. Availment of Cenvat credit under the Target Plus Scheme after its discontinuation.
2. Interpretation of relevant notifications and circulars regarding the availment of Cenvat credit.
3. Jurisdiction of Customs Authority over the utilization of certificates issued under the Target Plus Scheme.

Analysis:
1. The appeal by Revenue challenged the Cenvat credit availed by the respondent after the discontinuation of the Target Plus Scheme. The Revenue argued that since the scheme was discontinued, the benefit was not available, and the credit was incorrect. The Commissioner, however, dropped the demand, citing amendments in the relevant notifications allowing continued benefit post-discontinuation. The Revenue contended that the benefit was not available post-2006 based on eligibility criteria and Supreme Court's ruling on an amendment. The respondent argued that they were entitled to the scheme's benefits under specific notifications and circulars.

2. The Commissioner relied on Notification No. 73/2006-Cus and CBEC Circular No. 18/2006-Cus to support the respondent's claim of continued benefit post-discontinuation. The respondent's counsel argued that the benefit was permissible under Notification No. 32/2005-Cus and subsequent amendments, despite the scheme's discontinuation. The Tribunal noted that the Customs Authority had allowed the certificates issued under the scheme, and relevant notifications permitted the availment of additional duty credit.

3. The Tribunal emphasized that the utilization of certificates under the Target Plus Scheme fell under the Customs Authority's jurisdiction. With no duty demands raised by Customs, the Tribunal found that the certificates issued post-discontinuation were valid for credit availment. The Tribunal highlighted the continued validity of Notification No. 32/2005-Cus, allowing the credit of additional duty paid. Consequently, the Tribunal dismissed the Revenue's appeal, upholding the respondent's right to avail Cenvat credit under the scheme even after its discontinuation.