9911796707
TMI Blog2002 (2) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... ication 21/99-C.E. (N.T.), dt. 28-2-99 issued U/R 57A(CER) do put restrictions on debiting the AED(TTA) from the BED account maintained in RG23A Pt. II register Para 2 of the Notification No. 5/94-C.E. (N.T.), dt. 1-3-94 stipulates. The credit of specified duty allowed in r/o the inputs shall be utilised towards payment of duty of excise leviable under the Central Excise Act, 1944 .. As the AED (TTA) is leviable under the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, the debiting of AED (TTA) from BED a/c maintained in RG 23A Pt. II register (Rule 58A) is not correct. To sum up, debiting the AED (TTA) from BED a/c maintained in RG 23C Pt. II (Rule 57Q) (CER) is correct whereas debiting of AED(TTA) from BE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilised only for payment of excise duty under Section 3 of the Central Excise Act and since Additional Excise Duty (TTA) is not duty levied under Section 3 of the Central Excise Act, 1944, the credit earned on account of Basic Excise Duty in RG 23C Part II cannot be utilised for payment of Additional Excise Duty (TTA). 4. Arguing the case for the assessee Shri G.S. Bangoo, ld. Counsel submits that sub-rule (2) of Rule 57A provides (2) The credit of specified duty allowed under sub-rule (1) shall be utilised towards payment of duty of excise leviable on the final products whether under the Act or under any other Act as may be specified in the notification issued under sub-rule (1) and subject to the provisions of this Section and the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey are not permitted to debit Additional Excise Duty against the credit of Basic Excise Duty on inputs then the amount of credit of basic duty utilised for payment of Additional Excise Duty may be restored to them. Ld. Counsel also referred to the clarification given by the Department of Revenue in their letter dt. 14-12-2000. He submits that it has been clarified It may be submitted that, as under the old Rule so under the new Rule as well, the credit in respect of Basic Excise Duty paid on any inputs or goods can be utilised for payment of Additional Duty on the final product under the Additional duty (T TA) Act as well as Additional Excise Duty (GSI) Act. However, credit of Additional Excise Duty cannot be utilised for payment of B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of Basic Excise Duty taken on inputs or capital goods can be utilised for paying Basic Excise Duty on the finished product. Ld. DR submits that the same position is available in terms of Clause 2(b) of Notification No. 21/99, dt. 28-2-99. 8. Regarding clarification given by the Department of Revenue in their letter dt. 14-12-2000, ld. DR submits that this clarification pertains to Cenvat. Ld. DR, therefore, submits that in so far as the finding in respect of the input credit is concerned, the appeal of the assessee may be rejected and the appeal filed by the Department in regard to credit of duty taken on capital goods may be allowed. 9. We have heard the rival submissions. We have also perused the Rules, the notification issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional Duties of Excise which clearly means that credit of Basic Excise Duty cannot be utilised for payment of Additional Excise Duty because it is only credit of Additional Excise Duty which can be utilised for paying Additional Excise Duty. 10. In so far as the clarification dt. 14-12-2000 issued by the Board is concerned, we note that the instructions are meant for Cenvat and not meant for interpreting sub-rule 2 of Rule 57A or Clause 2 of Notification 21/99. 11. Having regard to the above discussions, we hold that the assessee is not entitled to utilise the credit of Basic Excise Duty on inputs/capital goods for payment of Additional Excise Duty on cotton yarn and blended yarn. In this view of the matter, the appeal of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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