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TMI Blog2005 (8) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... owing case laws and allowed the appeal of the respondents. 1) A.P. High Court finding reported in 1992 (57) ELT 561 (AP) 2) Deepak Vegetable Oil Industries Ltd. vs. UOI Gujarat High Court in Special Civil Application No. 6495/1989 judgment dated 30.1.90/ 5.2.90. The Gujarat High Court decision was upheld by Supreme Court. 3) Hindustan Lever Ltd. vs. UOI judgment dated 30.11.90 of Delhi High Court, The Revenue is aggrieved with the decision of the Commissioner (Appeals) allowing the respondents appeal. Hence they have come before this Tribunal on the following grounds. 3. Shri R.V. Ramakrishnappa learned SDR appeared on behalf of the Revenue and Shri B.S. Shasidhar for the respondents. 4. The learned SDR reiterated the grounds of appeal. The Order-in-Appeal is not legal and proper on the following grounds: a) The Commissioner (Appeals) vide impugned OIA has set aside the Speaking Order passed by the Asstt. Commissioner vide C.No. V/15/ 30/3/2003-Tech. dt 1.7.2004, following the ratio of decisions of Hon'ble Supreme Court in the case of Union of India vs. Dipak Vegetable Oil Industries Ltd., 1998 (100) ELT A175 (SC) and the decisions of High Court of G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he excess credit, if any available in the credit account shall not be refunded to the manufacturer or adjusted against or utilized for payment of duty on any excisable goods under any other circumstances. The Karnataka High Court in the case of Union of India vs. Modern Mills Ltd., 1994 (72) ELT 246 (Kar.) held that the accumulated credit could be utilized only subject to the conditions to the Notification and consequently it is not open to the manufacturer to insist on clearing his finished products, without paying any amount of excess duty. Since the scheme of Modvat is different, the assessee can not utilise beyond notification limitation. d) The Board vide Circular No. 3/93-CX.8 dated 11.3.1993 stated that any excess credit lying in books of earlier manufacturer would and would not be available to the new manufacturer. e) The Board vide Circular No. 11/91-CX.8 dated 21.2.1991, observed that- the money credit scheme provides credit of sums of money specified by the Central Government unlike the Modvat Scheme which provides for credit of duty on inputs. Since, the money credit allowed has no relationship with the duty paid on inputs, no provisions have been made f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of excise duty on export clearances and hence can not claim rebate. g) The case laws relied on by the learned Commissioner (Appeals) while deciding the present case relates to the money credit available as on 25.8.1989 wherein money credit was allowed to be carried to 11.10.1989 because of re-introduction of scheme as MONEY CREDIT only whereas the Commissioner (Appeals) in the impugned order allowed the accumulated money credit to be utilized for payment of excise duty by setting aside the speaking order of the Assistant Commissioner. Hence, the judgments referred to in the impugned order are not applicable to the present case. 5, The learned advocate for the respondents adduced the following arguments. 1) The Supreme Court as well as the High Courts have clearly held that credit which was accumulated and lying in the books of accounts as balance can be utilized for payment of excise duty on their final products. 2) The High Court of AP in the Respondent's own case in Agarwal Industries Ltd. vs. UO1, 1992 (57) EIT 561 has held that the accumulated credit does not cease with rescinding of Notification No. 25/89 but can be allowed to be utilized by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC)=1999 (306) EIT 3 (SC) b) Tungabhadra Indus. Ltd. vs. UOI, 2000 (38) RLT 907 (SC)=2000 (118) ELT 545 (SC) c) Samtel India Ltd. vs. CCE, Jaipur, 2003 (57) RLT 12 (SC)=2003 (155) ELT 14 (SC) 6. We have gone through the records of the case carefully. The money credit scheme was introduced for encouraging the use of minor oils in the manufacture of vanaspati. When the assessee used certain minor oils, they would be entitled to money credit which can be utilised for payment of duty on vanaspati. In the year 1996, the money credit scheme was abolished. At that time, the respondents accumulated money credit to the tune of ₹ 17.92 crores. The duty was re-introduced on vanaspati at the rate of ₹ 1.25 per kg. as per Notification 37/03-CE dated 30.4.03. The respondents requested that the accumulated amount of credit in their RG 23 B-2 may be allowed to be adjusted against the duty payable on clearance of their final products on monthly basts. According to the original authority, the money credit available and unutilized lapsed when the notification allowing is rescinded. Relying on various case laws, the Commissioner (Appeals) has allowed the appeal of the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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