2010 (3) TMI 156 - HC - Central Excise

Deemed Credit - Whether the Hon ble CEGAT is correct in extending the deemed credit benefit under Ministry s Order No.TS/36/94/-TRU dated 1.3.94 to a unit availing of exemption in terms of Notification No.1/93-CE dt.28.2.93 even after it crosses the exemption limit of Rs.75 lacs and starts paying duty at the normal rate? Held that the manufacturer would be entitled to claim excess amount from payment of duty upto Rs.75 lacs and thereafter upto Rs.2 crores and they are entitled to avail the deemed credit without production of documents. Decision in the matter of Steel Industrial (P) Ltd. vs. Commissioner of Central Excise (2009 -TMI - 33299 - HIMACHAL PRADESH HIGH COURT) followed

Summary

The High Court of Punjab & Haryana decided in favor of the assessee regarding the extension of deemed credit benefit under Ministry's Order. The Court referred to a previous case where it was held that the manufacturer can claim excess amount from duty payment up to Rs. 75 lacs and thereafter up to Rs. 2 crores without the need for document production. The judgment was delivered on March 18, 2010 by Hon'ble Mr. Justice Ashutosh Mohunta and Hon'ble Mr. Justice Mehinder Singh Sullar.