Target Plus certificate credit remains available when a continuing notification permits utilisation despite scheme discontinuance.
Cenvat credit on additional duty paid under Target Plus certificates could not be denied merely because the Target Plus Scheme was discontinued. The customs authorities had already allowed utilisation of the certificates, no customs demand had been raised, and Notification No. 73/2006-Cus continued to permit use of certificates issued for the relevant export period. Notification No. 32/2005-Cus also remained operative, including the condition allowing credit of additional duty. On that basis, the Revenue's objection based only on abolition of the scheme was rejected and the assessee's entitlement to credit was upheld.
Issues: Whether Cenvat credit of additional duty paid under Target Plus certificates could be denied after discontinuance of the scheme.
Analysis: The entitlement to utilise duty credit certificates issued under the Target Plus Scheme was held to fall within the domain of the customs authorities. The certificates had been allowed by the customs side and no customs demand had been raised. Notification No. 73/2006-Cus was issued after withdrawal of the scheme and permitted utilisation of certificates issued under the scheme on the basis of incremental FOB exports for the relevant period. Notification No. 32/2005-Cus also continued to operate, and its condition permitting credit of additional duty remained available despite the discontinuance of the scheme. The Revenue's objection based only on abolition of the scheme was therefore not accepted.
Conclusion: The credit could not be denied and the Revenue's challenge failed.
Final Conclusion: The demand was unsustainable and the assessee's entitlement to the credit was upheld.
Ratio Decidendi: Where a notification continuing to permit credit remains in force, and the customs authorities have allowed utilisation of duty credit certificates issued under the scheme, discontinuance of the scheme by itself does not justify denial of Cenvat credit by the excise authorities.
TaxTMI 
AI Drafter ✕
TaxTMI 
