Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2007 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (5) TMI 434 - AT - Central ExciseCenvat/Modvat - whether the credit of basic duty earned by the appellants can be utilized for payment of NCCD on the final product? Held that: - There is a restriction under Rule 3(7) of the Cenvat Credit Rules, 2004, which applies to the credit of various duties, such as additional duties on textiles and textile articles, NCCD, Educational Cess, etc. In terms of this restriction, which overrides the provisions of Rule 3(4), the credit of the named of duties can only be utilized for payment of the said duties alone. As a result, the credit of NCCD can be utilized for only paying of NCCD and not other kind of duties - In the present case, there is no dispute in this regard, since the appellants have utilized the credit of NCCD for paying NCCD only. By no stretch of imagination, this restriction can be extended to credit of duties not specifically listed under Rule 3(7). In the absence of any restriction and as provided under Rule 3(4) of the Cenvat Credit Rules, 2004, the credit of basic excise duty can be utilized for payment of any duty of excise and since the Commissioner herself has held that NCCD is a duty of excise, there can be no objection to the appellants utilizing the credit of basic duty for payment of NCCD - appeal allowed - decided in favor of appellant.
|