2010 (1) TMI 1237 - AT - Central Excise

Tribunal upholds decision on credit utilization, clarifies provisions.

The Tribunal dismissed the Revenue's appeal and upheld the decision in favor of the respondents regarding the utilization of credit. The judgment ... - Issues involved: The issue involved in this case pertains to the utilization of credit by the respondent, which was initially challenged before the Tribunal and subsequently led to a series of appeals and reconsiderations by the authorities regarding the repayment of the credit amount and the refund application made by the appellant.Details of the Judgment:Utilization of Credit Issue: The primary issue in this case revolved around the utilization of credit by the respondent, which stemmed from Order-in-Appeal No.84/2004. The Tribunal remanded the matter back to the lower authorities for reconsideration, leading to the passing of Order-in-Appeal No.136/2005 in favor of the respondent. The Revenue contended that the credit amount should not have been taken and utilized by the appellant, leading to a series of appeals and rejections by the department. The Tribunal, in its Final Order No.1317/08, held in favor of the assessee, emphasizing that the credit accrued does not lapse even after the rescinding of the notification, and it can be utilized at different units owned by the same manufacturer. The Tribunal dismissed the Revenue's appeal, affirming the correctness and legality of the impugned order by the ld. Commissioner (Appeals) based on established legal principles and previous judgments.Conclusion: The Tribunal, after careful consideration of the issue and in alignment with previous legal precedents, dismissed the Revenue's appeal, upholding the decision in favor of the respondents regarding the utilization of credit. The judgment reaffirmed that the credit accrued under specific provisions does not lapse upon rescinding of the notification and can be utilized as per the applicable conditions.