9911796707
TMI Blog2007 (4) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... s are manufacturers of tyres, tubes etc. RTCWS is an intermediate product arising during the course of manufacture of tyres. There was a dispute regarding classification of this intermediate product, between the appellant and the respondents, and the same has since been settled by the apex court in Commissioner of Central Excise, Goa and Chennai v. M.R.F. Ltd., 2005 (180) E.L.T. 145 (S.C.), wherein the commodity was held classifiable under CH 59.06 of the First Schedule to the Central Excise Tariff Act. AED under the Additional Excise Duties (Goods of Special Importance) Act, 1957 was not leviable on goods falling under CH 59.06. This duty was leviable on goods falling under CH 59.02 during the period 16-3-1995 to 1-6-1998 inasmuch as the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he input duty credit so accumulated. 3. In the budget of 2003, the CENVAT Credit Rules were amended to allow utilisation of credit of AED (GSI) on input for payment of Cenvat duty on final product. But such utilisation was restricted to credit of AED (GSI) accrued prior to 1-3-2003. In other words, credit of AED (GSI) paid on input prior to 1-3-2003 was allowed to be utilised for payment of AED (GSI) or Cenvat duty on final product cleared after that date. Again, the Budget of 2004 made a further change. It permitted credit of AED (GSI) paid on input or after 1-4-2000 only to be utilised for payment of duties of excise on final product cleared after 1-3-2003. Consequently, the respondents were not allowed to utilise credit of AED (GSI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see shall furnish the declaration as required under clause (i) on or before the 31st day of May, 2005; (iii) the Central Excise Officer shall, after considering the declaration made by the assessee under clause (ii), determine the amount of credit utilised on different dates for payment of Cenvat duty; (iv) the Central Excise Officer shall separately determine the amount of interest on the amount of credit (hereinafter referred to as the amount of interest) utilised for paying the Cenvat duty, in accordance with the provisions of clause (v); (v) the amount of interest on amount of credit utilised for paying the Cenvat duty shall be at a rate of thirteen per cent, per annum for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise (Goods of Special Importance) Act, 1957 (58 of 1957) paid on or after the 1st day of April, 2000 for payment of the Cenvat duty." Sub-section (6) authorised the proper officer of Central Excise to demand, through show-cause notice, any amount determined under sub-section (5) but not paid by the assessee. 4. In the present case, the original authority vide Order-in-Original No. 13/2002 had demanded duty of Rs. 8,99,99,526/- from the respondents, which was determined to be the total amount of AED (GSI) irregularly taken as Cenvat credit on inputs, later reversed and ultimately (on 27-3-2000) taken back in RG 23A Part II. The authority also imposed a penalty on the assessee for irregular availment of credit. In appeal, learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents to utilise credit of AED (GSI) paid on input for payment of a different kind of duty of excise on final product. Nevertheless, this aspect has since lost relevance because the proper Central Excise officer, authorised under Section 88 of the Finance Act, 2004 (as amended) has since passed an order determining the extent of credit irregularly taken on input by the respondents for the period of dispute. The jurisdictional Deputy Commissioner of Central Excise I [Chennai-I Commissionerate] in letter No. IV/16/36/04-Tech dated 14-6-2005 quantified the respondents' liability (to pay back ineligible credit of AED (GSI) taken on input) at Rs. 7,25,70,243/- and asked them to pay this amount in 36 equated monthly instalments (EMIs) of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmits that the amount of Rs. 4,47,66,181/- shown as the opening balance credit as on 1-4-2000 in the Deputy Commissioner's order was arithmetically deduced from the opening balance credit of Rs. 5,78,37,250/- as on 27-3-2000 worked out by the lower appellate authority. It is submitted that the difference between these two amounts (Rs. 1,30,71,069/-) is the net debit made in Cenvat account from 27-3-2000 to 31-3-2000. Learned counsel has given the following figures of credits and debits for the period 27-3-2000 - 31-3-2000 :- DATE CREDIT DEBIT 27-3-2000 - 63,46,198 28-3-2000 - 14,305 29-3-2000 40,48,767 75,788 30-3-2000 - 69,26,241 31-3-2000 1,86,932 39,44,236 Total 42,35,699 1,73,06,768 Net Debit = 1,73,06,768 - 42,35, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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