Cenvat credit for Special Additional Duty under DEPB and Target Plus schemes was upheld on settled precedent and circular guidance.

Cenvat credit was treated as admissible for Special Additional Duty of Customs debited under the DEPB and Target Plus schemes, because the binding circular clarified that duty paid through those schemes qualified for Cenvat benefit or drawback, including full credit of the 4% Special CVD. The tribunal applied its earlier precedent taking the same view, and the High Court found no error in that approach. On that settled position, the Revenue's challenge did not raise any substantial question of law.

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Issues: Whether Cenvat credit was admissible in respect of Special Additional Duty of Customs debited under the DEPB and Target Plus schemes, and whether any substantial question of law arose in the Revenue's appeal.

Analysis: The authorities below allowed the assessee's claim by following the binding circular clarifying that duty debited through schemes such as DEPB and Target Plus would qualify for Cenvat benefit or drawback, including full credit of the 4% Special CVD. The appellate tribunal also relied on its earlier decision taking the same view, and the High Court found no error in that approach. On the facts and the settled position reflected in the circular and precedent, the matter did not raise any substantial question of law.

Conclusion: The Cenvat credit was held admissible, and the Revenue's appeal failed.

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