Accrued Cenvat credit survives rescission where no transitional provision removes vested rights.

Accrued Cenvat credit under an existing notification could not be taken away by later rescission in the absence of transitional provisions. The Gujarat HC applied binding precedent that rights validly acquired under a prevailing credit scheme continue unless the later withdrawal expressly or by necessary implication extinguishes them. On that basis, the assessee was entitled to retain and transfer the deemed credit in its Cenvat Credit account, and the Revenue's challenge failed.

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Issues: Whether the assessee was entitled to retain and transfer deemed credit in its Cenvat Credit account after rescission of the notification granting such credit, in the absence of transitional provisions.

Analysis: The entitlement to credit had accrued under the prevailing statutory scheme, and a later rescission of the notification could not retrospectively take away that accrued facility unless the new provision so provided expressly or by necessary implication. The issue was already covered by binding precedent, which held that rights validly acquired under an existing credit scheme cannot be defeated by subsequent withdrawal of the scheme so as to unsettle acts already done under it.

Conclusion: The assessee was entitled to maintain the credit and the Revenue's challenge failed.

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