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TMI Blog2015 (2) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... d.Advocate heavily relied upon the Board s circular. Board s circular dt.16.04.2003 was issued in respect of utilization of CENVAT Credit of Basic Excise Duty towards payment of Additional Duties of Excise (GSI) Act, 1957. The Board s circular clarified respect of utilization of credit of Basic Excise Duty for payment of AED (T&TA). But, in the present case, the appellant utilized the AED (T&TA) for payment of Basic Excise Duty which is not covered by the Board s circular. I find that the CENVAT Credit Rules, 2002 has clearly imposed restriction of utilization of AED(T&TA) in respect of other duties. So, the appellant cannot utilize credit of AED (T&TA) for payment of Basic Excise Duty. The Tribunal in the case of Raymond Ltd (2014 (3) TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed CENVAT Credit. A show cause notice dt.18.05.2004 was issued by the Additional Commissioner, Central Excise Customs, Daman, proposing to recover CENVAT Credit of ₹ 29,16,687.00 along with interest and penalties for the period June 2003 to February 2004 on the ground that the appellant utilized the AED(T TA) CENVAT Credit for the payment of Basic Excise Duty and Additional Excise Duty (Sales Tax). It has been alleged that as per Rule 3(6)(b) of CENVAT Credit Rules, 2002, the appellant is not eligible to utilize the AED (T TA) for payment of Basic Excise Duty. The Adjudicating authority disallowed CENVAT Credit of ₹ 29,16,687.00 along with interest and also imposed penalty of equal amount under Rule 13 of CENVAT Credit Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s applicable in the case of yarn manufacturer who received the duty paid inputs and capital goods and credit can be utilized for payment of AED (T TA), while clearance of the yarn from their factory. 4. Ld.Advocate, in rejoinder, submits that the decision of the Tribunal in the case of Raymond Ltd is per incuriam in so far as Board s circular was not considered. He submits that the Board has accepted AED (T TA) as duty of Excise and therefore, CENVAT Credit can be utilized any duty of Excise. 5. After hearing both the sides and on perusal of the records, I find that the provisions of Rule 3 of CENVAT Credit Rules, 2002 may be reproduced as under: Rule 3. CENVAT Credit (1)..... (iv) the additional duty of excise leviable und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learance of the final product. Therefore, the appellant cannot utilize credit of AED(T TA) in respect of payment of basic duty for clearance of final product. Ld.Advocate heavily relied upon the Board s circular. Board s circular dt.16.04.2003 was issued in respect of utilization of CENVAT Credit of Basic Excise Duty towards payment of Additional Duties of Excise (GSI) Act, 1957. The Board s circular clarified respect of utilization of credit of Basic Excise Duty for payment of AED (T TA). But, in the present case, the appellant utilized the AED (T TA) for payment of Basic Excise Duty which is not covered by the Board s circular. I find that the CENVAT Credit Rules, 2002 has clearly imposed restriction of utilization of AED(T TA) in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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