9911796707
TMI Blog2008 (1) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... narration of the following important events is necessary: (i) Till July 22, 1996 : Vanaspati was liable to Central Excise duty. The respondents were also entitled to avail credits in terms of notifications issued by the Central Government under Rule 57K and to utilize the said credits for payment of Central Excise duty on Vanaspati. (ii) July 22, 1996 : Closing balance of unutilized accumulated credits lying with the respondents in the statutory register in Form RG 23B (Part II) aggregated to Rs. 17,32,78,689/-. (iii) July 23, 1996 : Vanaspati became liable to 'nil' rate of duty. Notification No. 45/89-C.E. (N.T.) issued under Rule 57K was also re scinded. (iv) July 23, 1996 to Feb., 28, 2003 : Vanaspati remained liable to 'nil' rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il' rate of duty and therefore the respondents were not able to utilize the said accumulated credit. (xi) 1-3-2003 : During budget of 2003, by amending Notification No. 6/2002-C.E. by Notification No. 6/2002-C.E., dated 1-3-2003, Vanaspati bearing a brand name and put in unit containers for retail sale became liable to Central Excise duty with effect from 1-3-2003. The department raised objection to the reutilizing the credit for paying duty. Hence, they paid Rs. 4,46,62,485/- as duty from PLA. (xii) 22-5-2003 : Writ Petition was filed before the Hon'ble Calcutta High Court and interim order was passed (W.P. No. 983/2003). (xiii) 9-6-2004 : Both Writ Petitions were decided by the Hon'ble High Court vide judgment dated 9-6-2004, pursuant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not have paid the duty amount of Rs. 4,46,62,485/- from PLA in the first place. No doubt under the Money Credit Scheme, cash refund was not permissible but the accumulated credit could have been utilized for payment of duty on re-imposition of the same. Since the departmental authorities unjustly stopped such utilization, the Hon'ble High Court has subsequently allowed the credit of the said amount of Rs. 4,46,62,485/- in the PLA. Part of it only could be utilized for payment of duty till subsequent exemption given to the impugned goods. As a result, the respondents have been left with a huge amount of credit in their PLA. Refund of the said amount would not in our view amount to refunding money credit in cash as it is actually equival ..... X X X X Extracts X X X X X X X X Extracts X X X X
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