2008 (2) TMI 734 - AT - Central Excise

Tribunal grants appellant higher duty rate credit based on valid invoices and jurisdiction principle

The Tribunal allowed the appeal, holding that the appellant was eligible to avail credit at the higher duty rate of 12% ad valorem paid by the subsequent ... Cenvat/Modvat - Quantum of credit Issues involved: Interpretation of Cenvat Credit Rules regarding eligibility of credit at different duty rates paid by original manufacturer and subsequent purchaser.Summary:The case involved a dispute regarding the eligibility of availing credit at different duty rates paid by the original manufacturer and subsequent purchaser. The original manufacturer paid duty at 8% ad valorem, while the subsequent purchaser paid duty at 12% ad valorem. The appellant, who purchased the goods from the subsequent purchaser, availed credit at the higher rate of 12% ad valorem. The Commissioner (Appeals) held that the appellant was not eligible for credit at the higher rate based on Rule 3(1)(i) of Cenvat Credit Rules, which specifies that credit shall be based on the duty leviable under the Act. However, the Tribunal, citing the case of Eveready Industries (I) Ltd v. CCE, Allahabad, emphasized that the Central Excise authorities cannot challenge assessments made by officers having jurisdiction over the input supplier. As the appellant availed credit based on valid invoices from the registered dealer and the duty payment at 12% ad valorem was not disputed, the Tribunal set aside the impugned order and allowed the appeal with consequential relief.