Tribunal Upholds Cenvat Credit Under Target Plus Scheme Post-Discontinuation

The Tribunal dismissed the Revenue's appeal, upholding the respondent's right to avail Cenvat credit under the Target Plus Scheme even after its discontinuation. The Commissioner's decision was supported by relevant notifications and circulars, allowing continued benefit post-discontinuation. The Tribunal emphasized the Customs Authority's jurisdiction over the utilization of certificates issued under the scheme, finding them valid for credit availment. Notifications permitted the availment of additional duty credit, leading to the dismissal of the Revenue's appeal.

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Issues:
1. Availment of Cenvat credit under the Target Plus Scheme after its discontinuation.
2. Interpretation of relevant notifications and circulars regarding the availment of Cenvat credit.
3. Jurisdiction of Customs Authority over the utilization of certificates issued under the Target Plus Scheme.

Analysis:
1. The appeal by Revenue challenged the Cenvat credit availed by the respondent after the discontinuation of the Target Plus Scheme. The Revenue argued that since the scheme was discontinued, the benefit was not available, and the credit was incorrect. The Commissioner, however, dropped the demand, citing amendments in the relevant notifications allowing continued benefit post-discontinuation. The Revenue contended that the benefit was not available post-2006 based on eligibility criteria and Supreme Court's ruling on an amendment. The respondent argued that they were entitled to the scheme's benefits under specific notifications and circulars.

2. The Commissioner relied on Notification No. 73/2006-Cus and CBEC Circular No. 18/2006-Cus to support the respondent's claim of continued benefit post-discontinuation. The respondent's counsel argued that the benefit was permissible under Notification No. 32/2005-Cus and subsequent amendments, despite the scheme's discontinuation. The Tribunal noted that the Customs Authority had allowed the certificates issued under the scheme, and relevant notifications permitted the availment of additional duty credit.

3. The Tribunal emphasized that the utilization of certificates under the Target Plus Scheme fell under the Customs Authority's jurisdiction. With no duty demands raised by Customs, the Tribunal found that the certificates issued post-discontinuation were valid for credit availment. The Tribunal highlighted the continued validity of Notification No. 32/2005-Cus, allowing the credit of additional duty paid. Consequently, the Tribunal dismissed the Revenue's appeal, upholding the respondent's right to avail Cenvat credit under the scheme even after its discontinuation.

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