CENVAT credit utilisation for additional duty of excise remained available after the 2003 rule amendment.

The amended Rule 3 of the CENVAT Credit Rules, 2002, brought into force from 1-4-2003 by Notification No. 18/2003-CE, permitted utilisation of CENVAT credit to discharge liability of additional duty of excise. The text notes that sub-rule (3) expressly allowed an assessee to pay that duty from the CENVAT credit account, leaving no basis to disturb the appellate view. On that statutory footing, CENVAT credit remained available for discharge of the additional duty of excise during the relevant period, and the Revenue's challenge failed.

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Issues: Whether CENVAT credit could be utilised to discharge liability of additional duty of excise after the amendment to Rule 3 of the CENVAT Credit Rules, 2002 brought into force by Notification No. 18/2003-CE dated 13-3-2003.

Analysis: The amended rules were brought into force from 1-4-2003. Sub-rule (3) of Rule 3 of the CENVAT Credit Rules, 2002 permitted an assessee to discharge liability of additional duty of excise out of the CENVAT credit account. In view of the settled statutory position created by the notification and the amended rules, there was no basis to interfere with the appellate order allowing such utilisation.

Conclusion: CENVAT credit was available for discharge of the additional duty of excise liability in the relevant period, and the Revenue's challenge failed.

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