CENVAT credit on CVD paid through DEPB debit remained admissible under the notification despite earlier policy-issued scrips.

CENVAT credit was available where countervailing duty was paid by debit in DEPB scrips issued under the earlier Foreign Trade Policy 2002-2007. The entitlement under Notification No. 96/2004-Cus. depended on the debit of additional customs duty through DEPB scrips, and the notification did not impose any exclusion for scrips issued under the earlier policy. The issue was treated as settled by the jurisdictional High Court on identical facts, making the controversy no longer res integra. The assessee was therefore entitled to CENVAT credit on the CVD paid through DEPB debit under the earlier policy.

---

---

Issues: Whether CENVAT credit of countervailing duty paid through debit in DEPB scrips issued under the earlier Foreign Trade Policy 2002-2007 was admissible under Notification No. 96/2004-Cus. dated 17/09/2004.

Analysis: The entitlement to credit under the notification was held to turn on the debit of additional customs duty through DEPB scrips and not on whether the scrips were issued under the newer policy alone. It was noted that the relevant notifications did not impose any condition excluding DEPB scrips issued under the earlier policy, and the issue had already been decided in favour of the assessee by the jurisdictional High Court on identical facts. The Tribunal treated the controversy as no longer res integra.

Conclusion: The assessee was entitled to CENVAT credit on the CVD paid through DEPB debit under the earlier policy.

---