2004 (8) TMI 112 - HC - Central Excise

Summary

Issues:
1. Extension of time to deposit amount as per court order.
2. Claim for deemed credit on rerollable material under Central Excise Act.
3. Interpretation of benefit availability for units availing exemption under Notification No. 1/93-C.E. after crossing clearance limit of Rs. 75 lakhs.

Analysis:
1. The petitioner requested an extension of time to deposit Rs. 1,000 as per the court order dated 17-7-2004. The court, represented by N.K. Sud and Adarsh Kumar Goel, JJ., accepted the prayer and directed the petitioner to deposit the amount within two weeks from the date of the judgment.

2. The assessee filed a reference application under Section 35H of the Central Excise Act, 1944, seeking direction to the Customs Excise & Gold (Control) Appellate Tribunal, New Delhi, to refer a question of law arising from its order dated 4-8-2000 for the opinion of the High Court. The Tribunal had denied the claim for deemed credit on rerollable material, citing a Government Order and a previous decision by a Larger Bench. The Tribunal's decision was based on the interpretation that the benefit of deemed credit was only available to Small Scale Industry (SSI) units under a specific exemption, and the assessee, having exceeded the clearance limit, did not qualify as such a unit.

3. The petitioner's counsel argued that the Tribunal had previously granted relief in similar cases and that a reference on the question had already been allowed at the revenue's instance. The High Court acknowledged the legal issue at hand and concluded that the question of law regarding the availability of deemed credit to a unit availing exemption under Notification No. 1/93-C.E. after surpassing the clearance value of Rs. 75 lakhs needed consideration. Therefore, the High Court directed the Tribunal to prepare a statement of the case and refer the question for the High Court's opinion, ultimately allowing the petition.