TMI Blog2013 (11) TMI 1529X X X X Extracts X X X X X X X X Extracts X X X X ..... credit pertaining to raw materials, semi-processed goods and finished goods amounted to ₹ 1,11,49,513/- and the credit allowed to be lapsed on 1-3-1997 was ₹ 1,35,41,134/-. As against this the differential duty liable to be paid by the appellant is ₹ 98,24,993/- plus ₹ 33,62,675/- totalling ₹ 1,31,87,668/-. Thus the demand against the assessee is less than the credit allowed to be lapsed and the lapsed credit could have been utilised for discharge of duty liability. We also notice that there is an error in the computation of demand of ₹ 1,89,10,961/- inasmuch as the demand required to be confirmed was for the period May, 1996 to July, 1996 whereas the same has been computed for the period up to August, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under dispute and the department wanted to classify the same under CETH 2936. This issue was examined by this Tribunal which held that Animal Feed Supplement is correctly classifiable under Chapter 23. Revenue went in appeal before the Hon ble Apex Court and the Hon ble Apex Court vide order dated 13-9-2000 dismissed the appeal of the Revenue. The Hon ble Apex Court also dismissed the appeal filed by the appellant against the levy of excise duty on Crude Vitamin A vide order dated 29-11-2010. Thus the classification issue stands settled. The Adjudicating Authority held that out of the total amount of credit of ₹ 2,90,71,427/- the appellant is entitled to a credit of ₹ 1,64,19,860/- and he is not entitled to take credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 98,24,993/-. The Id. consultant further submits that during the impugned period, the appellant had a credit balance of ₹ 2,46,90,647/- as on 28-2-1997. Of this, Cenvat credit pertaining to stock of inputs, work in process and finished goods as on 1-3-1997 was ₹ 1,11,49,513/-. In view of the amendment made in the Central Excise Rules, 1944 in Rule 57F(17) effective from 1-3-1997 the credit lying in the Modvat credit account on 1-3-1997 with the manufacturer of bulk drugs falling under Chapter 28 or 29 was lapsed. Thus an amount of ₹ 1,35,41,134/- was lapsed on account of this change in law, and the amount allowed to be carried forward was only ₹ 1,11,49,513/-. 5. The contention of the appellant is that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lapsed credit of ₹ 1,35,41,134/- should be adjusted against the impugned demands. The demand pertains to the period prior to 1-3-1997, i.e., date on which the credit was lapsed. If this is done, it can then be seen that the appellant is not liable to discharge any additional/differential duty liability. Consequently, there won t be any liability to pay interest or liability to pay any penalty. 6. The ld. Additional Commissioner (AR) for the Revenue reiterated the findings of the Adjudicating Authority. 7. We have carefully considered the submissions made by both sides. In the case of Eicher Motors Ltd. cited supra it was held by the Hon ble Apex Court that the right to Modvat credit has become absolute when the input is used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the appellant cannot be denied the utilisation of lapsed credit which had accrued to them prior to 1-3-1997. 9. We have also perused the records produced by the assessee and it is seen that the appellant had a closing balance of ₹ 2,46,90,647/- as on 28-2-1997 and the credit pertaining to raw materials, semi-processed goods and finished goods amounted to ₹ 1,11,49,513/- and the credit allowed to be lapsed on 1-3-1997 was ₹ 1,35,41,134/-. As against this the differential duty liable to be paid by the appellant is ₹ 98,24,993/- plus ₹ 33,62,675/- totalling ₹ 1,31,87,668/-. Thus the demand against the assessee is less than the credit allowed to be lapsed and the lapsed credit could have been utilised fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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