Additional excise duty credit on inputs can be used against basic excise duty under Rule 57F(12) of the Central Excise Rules.

Rule 57F(12) of the Central Excise Rules, 1944 was construed to permit credit of specified duty on inputs used for one final product to be applied against duty on another final product manufactured in the same factory. Applying that precedent, additional excise duty credit taken on tyre cord fabrics was held usable for payment of basic excise duty on tubes. The additional excise duty credit was therefore admissible for such utilisation, and the appeal succeeded.

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Issues: Whether additional excise duty credit taken on inputs could be utilised for payment of basic excise duty.

Analysis: The question was treated as already settled by the Tribunal in earlier precedent construing Rule 57F(12) of the Central Excise Rules, 1944. That provision was understood to contain a non-obstante clause and an enacting clause, permitting the credit of specified duty on inputs used for one final product to be applied towards duty on another final product manufactured in the same factory. On that basis, credit of additional excise duty on tyre cord fabrics was held to be usable for payment of basic excise duty on tubes.

Conclusion: The credit of additional excise duty on inputs was admissible for utilisation towards basic excise duty, and the appeal succeeded.

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