Cenvat credit on additional customs duty before 7 September 2009 remained in issue under the credit rules.

The issue concerns whether, for the period before 7 September 2009, a respondent could claim Cenvat credit of additional duty of customs paid under section 3(5) of the Customs Tariff Act, 1975, in light of the second proviso to rule 3(7)(a) of the Cenvat Credit Rules, 2004. The Gujarat High Court admitted the appeal and framed a substantial question of law on that entitlement, indicating that the matter turned on the interpretation and application of the Cenvat credit restriction for the relevant period.

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Issues: Whether, for the period prior to 7-9-2009, the respondent was entitled to Cenvat credit of additional duty of customs paid under sub-section (5) of Section 3 of the Customs Tariff Act, 1975 having regard to the second proviso to clause (a) of sub-rule (7) of Rule 3 of the Cenvat Credit Rules, 2004.

Outcome: The appeal was admitted and a substantial question of law was framed for consideration.

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