Retrospective CENVAT credit amendment permits use of additional excise duty credit for central excise duty payment.

Credit of additional duty of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 was treated as utilisable for payment of central excise duty under the CENVAT Credit Rules, 2002 because section 88 of the Finance Act, 2004 retrospectively amended rule 3(6)(b). The amendment's explanation expressly permitted use of such credit in relation to duty paid on or after 1 April 2000. The Tribunal also relied on its earlier decision in the same assessee's case, so the Revenue's objection failed and the appeal was decided against the Revenue.

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Issues: Whether credit of additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 could be utilised towards payment of central excise duty under the CENVAT Credit Rules, 2002, in light of the retrospective amendment introduced by the Finance Act, 2004.

Analysis: The Tribunal noted that the issue had already been decided in the respondent's own case in its favour. It further noted that section 88 of the Finance Act, 2004 amended rule 3(6)(b) of the CENVAT Credit Rules, 2002 with retrospective effect, and the amended explanation expressly permitted utilisation of credit of additional duty of excise paid on or after 1 April 2000 towards payment of duty of excise under the Central Excise Tariff Act, 1985. In view of the earlier decision and the retrospective statutory amendment, the Revenue's objection did not survive.

Conclusion: The credit of additional duty of excise was held utilizable towards payment of central excise duty, and the appeals were decided against the Revenue.

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