9911796707
TMI Blog2010 (9) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... : As per facts on record the appellant is engaged in the manufacture of leather cloth. For the said purpose they purchased polyester/cotton yarn from the market on which basic duty under additional excise (Textile and Textile Article) [hereinafter referred to as AED (T TA)] stands paid. After manufacturing fabrics from the said yarn, the same are further converted into leather cloth. The said leather cloth cleared by the appellant does not attract any duty under AED (T TA) but they are required to pay basic duty as also Additional Excise Duty (Goods of Special Importance) Act [referred to as AED (GSI)]. They used the modvat credit of AED (T TA) to discharge their obligation of AED (GSI). This was objected to by the Revenue and proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Shri Avinash Thete, learned SDR for the Revenue, we find that two legal issues are required to be decided in the present appeal. As regards the first issue as to whether the credit of AED (T TA) can be used for discharging the duty obligation on the AED (GSI), we find that the issue is no more res-integra and stands settled by the Tribunal s decisions. In the case of Reliance Industries Ltd. Vs. CCE Ahmedabad reported in 2002 (150) ELT 479 (Tribunal), it was held that the credit of duty paid under Section 3 of additional duties of excise (Textile and Textile Articles) Act, 1978 can be used towards payment of duty under Additional Duties of Excise (Goods of Special Importance) Act, 1957. The said decision stands followed in number of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion but with a rider. In the discussion part of his order, he has observed as under: That, the then Modvat Rules read with above referred notifications i.e. 5/94-C.E. (N.T) and 21/99-C.E. (N.T.) clearly stipulate that duty paid on inputs shall be allowed as credit when input is used in or in relation to the manufacture of final excisable products . As yarn is being used in manufacture of leather cloth, the credit of Additional Excise Duty (T TA) is allowed to be availed by the manufacturer. There is no restriction on such availment and manufacturer can keep on accumulating such modvat credit. The only restriction is that credit of A.E.D. (T TA) is to be only utilized for payment of A.E.D. (T TA) but they can surely utilize the said cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Having answered the above legal issues in favour of the assessee, we find that there is some factual disputes as regards the utlisation of AED (T TA) credit towards payment of basic excise duty as also in respect of AED (GSI) and also in respect of the period involved. Commissioner (Appeals) has observed that the period to which accumulated credit is sought to be refunded is from 1997 2000 whereas the notice placing the assessee under embargo was issued subsequently, the appellant in their memo of appeal has shown the disputed period as April 2000 to June 2001. For verification of the factual decisions, we set aside the impugned order and remand the matter to the original adjudicating authority for doing the needful, in the light of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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