TMI Blog2019 (1) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... te 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 hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion is answered in favour of the appellants. 3.The Civil Miscellaneous Appeal in C.M.A.No.826 of 2017 was admitted on the following substantial questions of law: (a) Whether the differential duty paid after 16.03.1995 for clearances of excisable goods (components) made before 16.03.1995 will be available as credity 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 and (b) Whether in the above circumstances the Tribunal was correct in reject claim for ₹ 19,50,090/- which will be available to the appellants if the above question is answered in favour of the appellants. 4.Mr.P.R.Renganath, learned counsel for the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on three occasions on the same issue. On the first occasion, the assessee was successful. The said decision was reported in 2001 (1385) ELT 544 (Tri.-Chennai) . The Single Member Bench of the Tribunal held that in terms of Rule 57F(4A) of the Rules unutilized credit of duty as on 16.03.1995 gets lapsed. The goods had been received prior to that date on which additional duty paid had lapsed. Subsequently, there was a demand for the differential duty at the hands of the supplier on this date and documents were received after 16.03.1995 and the credit had been taken subsequent to that date. The Tribunal held that the duty paid cannot be correlated to the duty payment remaining unutilized prior to 16.03.1995 and accordingly, held that the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les falling under heading No.87.02 and 87.04 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) shall lapse and shall not be allowed to be utilized for payment of duty on any excisable goods, whether cleared for home consumption or for export: Provided that nothing contained in this sub-rule shall apply to credit of duty, if any, in respect of inputs lying in stock or contained in finished products lying in stock on the 16th day of March, 1995. 8.In terms of the above rule 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. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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