2004 (3) TMI 169 - AT - Central Excise

Summary

Issues:
1. Whether the assessee was right in taking credits and making debits in respect of duty payments pursuant to RT-12 assessment orders.
2. Whether the excess paid amount could be claimed only as a refund under Section 11B of the Central Excise Act post the amendment of Rule 173-I w.e.f. 20-11-1996.

Analysis:
1. The issue in dispute before the Commissioner (Appeals) was whether the assessee was correct in taking credits and debits in relation to duty payments following RT-12 assessment orders under Rule 173-I of the Central Excise Rules, 1944. The Commissioner noted that Rule 173-I allowed the assessee to take credit for excess duty and pay deficiencies by making debits within a specified timeframe after assessment by the Superintendent. The Commissioner also highlighted that the amendment to Rule 173-I was prospective in application, as clarified by Circulars issued by the Board. Additionally, the Tribunal had previously upheld similar credit and debit actions in the case of Sulekha Works Ltd. The Revenue contended that the assessee should have filed a refund application for the excess duty paid instead of taking credit based on the assessment order.
2. Upon reviewing the records and submissions from both sides, the Tribunal found no merit in the Revenue's appeals. The Tribunal observed that the Commissioner (Appeals)'s decision aligned with the Circular of the Board and a previous Tribunal order in the case of Sulekha Works Ltd. The Tribunal also noted that a prior Tribunal order and a Supreme Court decision confirmed that Section 11B did not apply to differential duties arising from Rule 173-I assessments. In light of the legal precedents and the arguments presented, the Tribunal concluded that there was no merit in the Revenue's appeals, which were subsequently rejected.