2004 (9) TMI 215 - AT - Central Excise

Summary

Issues:
- Utilization of CENVAT credit of Basic Excise Duty (BED) for Additional Excise Duty (AED) payment
- Entitlement to refund/rebate of duty on exported goods
- Maintainability of appeals before the Tribunal

Utilization of CENVAT credit of BED for AED payment:
The appeals were directed against an order-in-appeal that reversed the orders-in-original allowing refund/rebate of duty to the appellants. The controversy revolved around whether the AED could be paid from the CENVAT credit of BED. The Commissioner (Appeals) held that the CENVAT credit of BED could not be used for AED payment. However, the Tribunal disagreed, citing Rule 57AB(1)(a) which allows the utilization of CENVAT for any excise duty, including AED. The Tribunal emphasized that beneficial provisions should not be interpreted to deprive an assessee of their rights. It was noted that prior restrictions on such utilization were removed, making it clear that CENVAT credit of BED can be used for AED payment.

Entitlement to refund/rebate of duty on exported goods:
The appellants, engaged in manufacturing cotton products, exported goods and paid duty, including AED, from their CENVAT credit register. They claimed refund of the duty paid on exported goods. The adjudicating authority allowed the claims, which were challenged by the Revenue. The Commissioner (Appeals) reversed the orders, but the Tribunal held that the appellants properly paid duty on exported goods and were entitled to the refund/rebate. The Tribunal set aside the impugned order and restored the orders-in-original, allowing the refund claims.

Maintainability of appeals before the Tribunal:
The Revenue argued that the appeals were not maintainable before the Tribunal due to the issue of rebate. However, the Tribunal found that the main issue was the utilization of CENVAT credit of BED for AED payment, with refund/rebate claims being consequential reliefs. Therefore, the appeals were deemed competent and maintainable. The Tribunal allowed the appeals, setting aside the impugned order and restoring the orders-in-original, granting the appellants consequential relief under the law.