2005 (3) TMI 290 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 48/2000-C.E. (N.T.) dated 18-8-2000 regarding utilization of Cenvat credit.

Analysis:
The case involved two Revenue appeals concerning the interpretation of Notification No. 48/2000-C.E. (N.T.) dated 18-8-2000, which restricted the utilization of Cenvat credit to the extent available as on the 15th day of the month of payment of duty. The Commissioner held that the Notification had prospective effect and denied demands raised by denying the benefit of payment of duty through Cenvat credit. The Revenue contended that the assessees were not entitled to the balance Cenvat credit available prior to the date of the Notification and sought restoration of the Original Order-in-Original (OIO) and imposition of penalty.

Upon careful consideration of submissions, the Tribunal noted that the assessees had already earned the Cenvat credit before the Notification came into existence. Therefore, the Notification was held to have prospective effect, as determined by the Commissioner. The appellants had utilized the credit earned for their clearances, which was deemed correct and in accordance with the law. The Tribunal found the Commissioner's order to be just, legal, and proper, concluding that there was no merit in the appeal. Consequently, the appeal was rejected, and the original order was upheld.

The judgment was pronounced in open court on 31-3-2005 by the Tribunal comprising Dr. S.L. Peeran, Member (J), and Shri T.K. Jayaraman, Member (T).