Deemed credit balance survives notification withdrawal and remains usable where no express lapse or reversal is provided.

Unutilized deemed credit validly earned under Notification No. 6/2002-CE(NT) could not lapse or be reversed merely because the notification was later withdrawn by Notification No. 8/2003-CE(NT). In the absence of any express provision requiring lapse of the accumulated balance as on 31.03.2003 or its reversal, credit lawfully availed remained available for utilization after 01.04.2003. The article notes that this position had been consistently applied in earlier decisions, and the contrary order was unsustainable.

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Issues: Whether unutilized deemed credit lying in balance under Notification No. 6/2002-CE(NT) could be utilized for clearance of goods after the withdrawal of deemed credit by Notification No. 8/2003-C.E.(NT).

Analysis: The deemed credit had been validly availed when Notification No. 6/2002-CE(NT) was in force. No provision existed for lapsing the accumulated balance as on 31.03.2003 or for its reversal. In the absence of such a provision, credit lawfully earned could not be denied merely because the notification was later withdrawn. The issue had already been consistently decided in the same manner in earlier decisions.

Conclusion: The unutilized deemed credit was not liable to lapse or reversal and could be utilized even after 01.04.2003; the impugned order was unsustainable.

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