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TMI Blog2005 (10) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... paying any Additional Excise Duty under the Goods of Special Importance [hereinafter referred AED (GSI)] on the ground that the intermediate rubberized cord fabric is classifiable under Tariff Heading 59.06 of the Central Excise Tariff on which no AED (GSI) is payable. The matter travelled to the Tribunal and the Tribunal vide order dated 25-7-2003 held against the appellant The appellant filed appeal before the Hon ble Supreme Court, which was subsequently withdrawn. In pursuance to the decision of the Tribunal, the appellant paid the AED (GSI) on 24-1-2004 and taken the credit utilized for payment of duty. Show cause notice was issued to the appellant on 9-6-2004 for recovery of the credit on the ground that utilization of AED (GSI) was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the adjudicating authority denied the credit on the ground that the credit was taken in respect of the duty payable prior to 1-4-2000. The contention is that this finding is not sustainable as the duty was paid in view of the decision of the Tribunal whereby the issue of classification of the intermediate product was decided against the appellant. The contention is that the credit was taken when the duty was paid by the appellant, as the duty was paid after 1-4-2000, therefore, they had rightly taken credit and the same was utilized for payment of Central Excise duty. The appellant also contended that whole exercise is neutral as in the case of CCE v. MRF Ltd. reported in 2005 (180) E.L.T. 145 held that the rubberized tyre cord fabric is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or after 1-4-2000. There is no dispute that in the present case duty was paid on 24-1-04 in pursuance to the order passed by the Tribunal on 25-7-03. The manufacturer can take credit only on payment of appropriate duty on the inputs used in the manufacture of final product. As the dispute in respect of the classification of intermediate product was resolved by the Tribunal against the appellant in the month of July, 2003, therefore, duty was paid in pursuance to the order in the month of Jan. 2004 and the same was utilized on the same month. During this period, as per Cenvat Credit Rules, the manufacturer was entitled to utilize the credit in respect of the AED (GSI) towards payment of duty leviable under First Schedule or Second Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 1-3-2003) can be used for payment of Cenvat duty as well as AED (GSI). Field formations and trade may please be informed accordingly. Any further difficulties in implementation may please be brought to our notice. 7. In view of the above circular a manufacturer was entitled to utilize the credit in respect of the AED (GSI) towards payment of Central Excise duty. This rule was amended retrospectively with effect from 1-3-03. As per the amended provisions the Cenvat credit Rules credit could be taken only in respect of the AED (GSI) paid on or after 1-4-2000. In the present case as the duty was paid on 24-1-04 and credit was taken on the same date and was utilized towards payment of Central Excise Duty, therefore, the impugned order w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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