TMI Blog2007 (9) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ondents M/s. Rajalakshmi Textile Processors (P) Ltd., Erode and M/s. S.S.M. Processing Mills Ltd., Komarapalayam are engaged in the processing of cotton fabrics and man made fabrics falling under CETH 52 and 55 of schedule of CETA, 1985 and cleared the same on payment of duty under Bond. The assessees have obtained fabrics from outsiders for carrying out several processing work on job work basis and were availing deemed credit in respect of the inputs in terms of Rule 11 of erstwhile Cenvat Credit Rules, 2001 read with Notification No.53/2001 CE(NT) dated 29.06.2001 and Notification No.6/2002 CE(NT) dated 01.03.2002 at specified rates and utilised the credit for payment of duty on the clearances of the processed fabrics for home consumption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... funded amount of input duty credit for the period of delay beyond the period of three months prescribed under sub-section 1 of section 11BB since the unutilized portion of deemed credit is governed only by the provisions of specific law viz. Rule 5 of Cenvat Credit Rules, 2001/2002 and this specific provision of law govern with self-contained procedure setout under Notification No.11/2002CE(NT) dt.1.3.2002 ?" 4. We heard the argument of the learned Additional Solicitor General of India. 5. Section 11B(2)(c) and 11BB of the Central Excise Act provides as follows : "11B. Claim for refund of duty (1).......... (2) If, on receipt of any application, the Assistant Commissioner of Central Excise or Deputy Commissioner of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty." 6. On the reading of the provisions, we are of the view that the approach of the Tribunal is correct. Under Modvat credit scheme, duty paid on inputs was allowed to be taken as credit for duty payable on clearance of the final products. The credit taken was nothing but for payment of duty. Thus, Modvat credit is a credit taken on payment of duty which credit could be utilised for the duty payable on the end product. Therefore, the Modvat credit is nothing but the credi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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