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TMI Blog2008 (5) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... d this appeal against the impugned order passed by the Commissioner (Appeals). 2. Brief facts of the case are that the appellant are engaged in the manufacture of grey fabrics and were working under the CENVAT credit scheme. The applicants were availing credit in respect of duty paid on inputs which is basic excise duty as well as Additional Excise Duty (Textile and Textile Ariticles) Act [AED (T TA]. The final products of the appellant were exempted from payment of duty with effect from 9.7.04. As the final product of the appellant was exempted from payment of duty, the appellant paid basic excise duty from the account of AED (T TA) in respect of inputs lying in stock or contained in the finished goods and under process. A show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ground that appellant wrongly paid the basic excise duty from the credit availed in respect of AED (T TA) account which is not permissible. Therefore, demand is rightly made. 5. I find that it is a settled proposition of law that credit in respect of AED (T TA) cannot be utilised for payment of basic excise duty as held by the Tribunal in the case of K G Denim Ltd. v. CCE, Salem reported in 2008 (222) E.L.T. 464(Tri.-Chennai). 6. In the present case, the appellants were availing credit of duty paid in respect of inputs used in or in relation to manufacture of final products. The final product was exempted from payment of duty with effect from 9.7.2004. At that time, there was no balance in the RG 23A Part II account. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme is required to be paid though cash payment /PLA or not?" 7. The Hon'ble High Court held as under: "We have heard the learned Counsel for the appellant-revenue of a considerable length and find that no question of law warranting admission of the appeal would arise. There are findings of fact recorded by the Commissioner (Appeals) as upheld by the Tribunal to the effect that the assessee-respondent had correctly availed and utilised the credit of duty paid by them on those inputs when these final products were chargeable to excise duty. It has further been found that there was no one to one relationship of the inputs used and the final products manufactured and cleared from the factory. It has rightly been held that the credit of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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