Cenvat credit utilisation for Additional Duty of Excise upheld where no prohibition existed in the rules.

Cenvat credit could be used to discharge Additional Duty of Excise (Textiles and Textile Articles) because neither the duty provisions nor the Cenvat Credit Rules imposed a prohibition on such payment. The Tribunal accepted the assessee's contention on permissible utilisation of the Cenvat account and rejected the denial of that mode of payment. The impugned order was set aside and the appeal was allowed.

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Issues: Whether Additional Duty of Excise (Textiles and Textile Articles) could be paid from the Cenvat credit account.

Analysis: The dispute turned on whether the relevant duty and the Cenvat Credit Rules contained any prohibition against using Cenvat credit for payment of Additional Duty of Excise (Textiles and Textile Articles). The Tribunal found that no such prohibition existed and accepted the appellant's contention that the duty could be discharged from the Cenvat account.

Conclusion: The issue was decided in favour of the assessee, and the denial of payment from the Cenvat account was not sustained.

Final Conclusion: The impugned order was set aside and the appeal was allowed.

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