2010 (3) TMI 1069 - HC - Central Excise

Assessee entitled to deemed credit benefit beyond Rs. 75 lakhs clearance value when paying full duty.

The Punjab and Haryana HC ruled in favor of the assessee, allowing deemed credit benefit even after crossing the clearance value of Rs. 75 lakhs when ... Whether the Hon’ble CEGAT is correct in extending the deemed credit benefit to a unit availing of the exemption in terms of N/N. 1/93-C.E., dated 28-2-93 even after crossing the value of clearance of ₹ 75 lakhs when a unit pays full rate of duty? Held that: - similar issue decided in the case of Sood Steel Industrial (P) Ltd. v. Commissioner of Central Excise [2009 (4) TMI 62 - HIMACHAL PRADESH HIGH COURT], wherein the Division Bench of Himachal Pradesh High Court has held that the manufacturer would be entitled to claim excess amount from payment of duty upto ₹ 75 lacs and thereafter upto ₹ 2 crores and they are entitled to avail the deemed credit without production of documents - appeal dismissed - decided against Revenue. The Punjab and Haryana High Court ruled in favor of the assessee, stating that a unit availing exemption under Notification No. 1/93-C.E. can still receive deemed credit benefit even after crossing the clearance value of Rs. 75 lakhs when paying full duty. This decision was based on a similar ruling by the Himachal Pradesh High Court in the Sood Steel Industrial (P) Ltd. case.