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2019 (1) TMI 665 - HC - Central ExciseCENVAT Credit - time limitation - N/N. 11/95-C.E. (NT) dated 16.03.1995 - Whether the differential duty paid after 16.03.1995 for clearances of excisable goods (components) made before 16.03.1995 will be available as credit to the manufacture of final products (Chassis) in terms of Rule 57E of CEA 44 (OR) whether in view of the Rule 57F(4A) the said credit will be barred? Held that:- In terms of Rule 57F(4A) which commence with a non obstante clause, any credit excise duty lying unutilized on 16.03.1995 with the manufacturer of tractors or motor vehicles shall lapse and shall not be allowed to be utilized for payment of duty on any excisable goods. The assessee's contention is that the credit which accrue to them in August 1995 was much after the date fixed in Rule 57F(4A) of the Rules and therefore, the same will not lapse. However, one important factor which the assessee has lost sight is that this credit which was earned by the assessee was on account of the payment of CVD as demanded by the Madras Customs in respect of the imports made by the assessee (inputs) and admittedly these imports were prior to 16.03.1995. Therefore, the Commissioner was fully justified in holding that had the assessee has correctly paid the CVD at the time of import and availed MODVAT credit, this amount would have lapsed as per Rule 57F(4A) of the Rules. The first respondent rightly rejected the assessee's case - the substantial questions are answered against the appellant.
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