9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2004 (2) TMI 195 - AT - Central ExciseCenvat/Modvat - Whether Cenvat Credit can be used for payment of Additional Excise duty - HELD THAT - We observe that Rule 2(7) of the Central Excise Rules 1944 defines only duty to mean duty payable u/s 3 or Section 3A of the Central Excise Act. This sub-rule also does not define the expression any duty of excise which is mentioned in sub-rule (1B) of Rule 57AB(1). The Additional Duties of Excise which is levied and collected under the Additional Duties of Excise Act 1957 are also Duties of Excise and these will be covered by the expression any Duty of Excise used in sub-rule (1B) of Rule 57AB(1). We further observe that as per Section 2(a) of the Additional Duties of Excise Act 1957 the Additional Duties means the Duties of Excise levied and collected under sub-section (1) of Section 3. This leaves no doubt in our mind that the Cenvat Credit can be utilised for making payment of Additional Excise Duty levied under the Additional Duties of Excise Act 1957. Sub-rule (2B) of Rule 57AB only places restrictions on the use of credit in respect of Additional Duty of Excise as it provides that the credit of these duties can be utilised only towards the payment of duty of excise leviable under the Additional Duties of Excise Act or under the Additional Duties of Excise Act 1957. There is no condition specified in Rule 57AB which provides that Basic Excise Duty or Special Excise Duty cannot be used for payment of Additional Duty of Excise leviable under any of these Acts. This is what was clarified by the Board under letter dated 14-12-2000 The Sr. Counsel has rightly emphasised that the Tribunal has specifically mentioned in Gontermann Peipers (I) Ltd. 2002 (2) TMI 1005 - CEGAT NEW DELHI that the decision was delivered in respect of interpretation of sub-rule (2) of Rule 57A or Clause (2) of Notification No. 21/99 and not Cenvat credit involved in the present appeals. We therefore do not find any reason to interefere with the impugned orders and reject both the appeals of the Revenue.
Issues involved: Whether Cenvat Credit can be used for payment of Additional Excise duty.
Summary: In the appeals filed by the Revenue, the main issue was whether Cenvat Credit could be utilized for the payment of Additional Excise duty. The Revenue argued that the statutory definition of 'Duty of Excise' did not include Additional Excise Duty, hence Cenvat Credit could not be used for its payment. They also cited a Tribunal decision to support their stance. On the other hand, the respondents contended that Board's clarification allowed for the use of Cenvat Credit for Additional Excise Duty payment. They referenced previous Tribunal decisions to support their argument. The Tribunal analyzed the relevant rules and Acts, concluding that Cenvat Credit could indeed be used for Additional Excise Duty payment as it fell under the category of Duties of Excise. They highlighted the absence of any restriction on using Basic Excise Duty for Additional Excise Duty payment, as clarified by the Board. The Tribunal upheld the impugned orders, stating that the previous Tribunal decision cited by the Revenue did not apply to the current case involving Cenvat credit. In conclusion, the Tribunal ruled in favor of the respondents, allowing the utilization of Cenvat Credit for the payment of Additional Excise Duty, based on the interpretation of relevant rules and Acts, as well as the clarification provided by the Board.
|
