Cenvat credit during forfeited instalment facility barred only for the default period; no substantial question of law arose.

Rule 173G(1)(e) of the Central Excise Rules, 1944 was construed to bar a defaulting manufacturer from using Cenvat credit for duty payment during the period when the instalment payment facility stood forfeited. The restriction applied only to that limited period and did not affect the underlying entitlement to Cenvat credit under the scheme. The Court found no conflict between Rule 173G and the Cenvat credit provisions, upheld the Tribunal's interpretation, and held that no substantial question of law arose from the order.

---

---

Issues: Whether, on a proper construction of Rule 173G(1)(e) of the Central Excise Rules, 1944, a defaulting manufacturer could continue to utilise Cenvat credit for payment of duty during the period of forfeiture of the instalment payment facility, and whether any substantial question of law arose from the Tribunal's order.

Analysis: The provision was read to mean that, for the limited period during which the assessee defaulted and lost the facility of paying duty in instalments, one of the two permissible modes of payment, namely utilisation of Cenvat credit, was not available. This restriction was held not to affect the underlying entitlement to Cenvat credit under the credit scheme itself. The Court found no inconsistency between Rule 173G and the Cenvat credit provisions and held that the Tribunal had correctly interpreted the rule.

Conclusion: No question of law, much less a substantial question of law, arose from the Tribunal's order, and the appeal was dismissed.

---