CENVAT credit utilisation for duty payment upheld where Rule 3(3) permitted use subject to prescribed manner and timing.

Rule 3(3) of the CENVAT Credit Rules, 2001 permitted utilisation of CENVAT credit for payment of excise duty on final products, subject to the prescribed manner and timing of such utilisation. For the relevant period, the credit was treated as validly usable in that way, and no infirmity was found in the order under challenge. The challenge therefore failed.

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Issues: Whether CENVAT credit could be utilised for payment of duty on the final products in the manner permitted by Rule 3(3) of the CENVAT Credit Rules, 2001.

Analysis: The relevant period was September 2001 to December 2001. Rule 3(3) of the CENVAT Credit Rules, 2001 expressly permitted utilisation of CENVAT credit for payment of duty of excise on final products, subject to the manner and timing of utilisation specified in the rule. On that basis, no infirmity was found in the order under challenge.

Conclusion: The credit was held to be utilisable in accordance with Rule 3(3), and the challenge to the order failed.

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