2005 (10) TMI 467 - AT - Central Excise

Tribunal rules in favor of appellants, affirming proper debit and discharge of liabilities.

The tribunal set aside the impugned order, affirming that the debit made by the appellants in RG-23B Part-II was proper and discharged their liabilities ... Money credit Issues:1. Rescission of benefit under money credit scheme and mode of duty payment.Analysis:The judgment dealt with the issue of rescission of the benefit under the money credit scheme and the mode of duty payment. The appellants debited the duty through RG-23B when the notifications rescinding the benefit were issued, but the department insisted on duty payment through PLA. The learned Advocate cited relevant case laws to support the argument that the credit accumulated and remaining unadjusted did not lapse but the mode of adjustment stood extinguished. The judgment referred to the decisions in Dipak Vegetable Oil Industries Ltd. v. Union of India and M/s Kusum Products Ltd. v. Union of India to establish that the right to utilize credit for duty payment on the final product did not cease upon rescinding the relevant notification.The learned Jt. CDR reiterated the contention of the order-in-appeal but acknowledged the difference in the two Orders-in-appeal produced by the appellant. The Jt. CDR suggested remanding the case for a fresh decision by the Commissioner (Appeals). However, the tribunal held that the case laws cited by the appellant favored their position, eliminating the need to refer the matter back to the Commissioner (Appeals). Consequently, the tribunal set aside the impugned order, affirming that the debit made by the appellants in RG-23B Part-II was proper and discharged their liabilities. The judgment was pronounced in an open court by Dr. T.V. Sairam, J.