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Issues: Whether, in view of Notification No. 12/2003-C.E. (N.T.), the appellant was entitled to discharge duty liability through both PLA balance and CENVAT credit and claim refund, particularly where the new procedure was recent, revenue neutral, and no prejudice was caused to the Revenue.
Analysis: Notification No. 12/2003-C.E. (N.T.) introduced a new mode of payment of duty with effect from 1-4-2003, but it did not expressly supersede the earlier notification. The available PLA balance and CENVAT credit were sufficient to discharge the duty liability for the relevant period. The change was procedural and in its infancy, so it ought not to defeat the substantive entitlement of the assessee to use the available credit. In the absence of revenue loss and in light of the revenue-neutral character of the dispute, the matter did not warrant a strict approach.
Conclusion: The appellant was entitled to succeed and the refund claim could not be denied on the procedural ground taken by the Revenue.
Final Conclusion: The appeal was allowed, and the assessee obtained relief on the footing that the procedural change could not override the substantive availability of duty credit and PLA balance in a revenue-neutral situation.
Ratio Decidendi: A new procedural mode of duty payment cannot be applied so rigidly as to defeat substantive credit-based discharge of duty where the assessee had sufficient available balances and the dispute caused no revenue prejudice.
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