Target Plus scheme credit entitlement upheld for Special Additional Duty under the customs notification.

Cenvat credit was held admissible for Special Additional Duty debited under the Target Plus scheme because the governing customs notification permitted drawback or CENVAT credit of additional duty leviable under section 3 of the Customs Tariff Act. The issue was treated as scheme-specific, and earlier DEPB-related rulings were distinguished. Relying on the jurisdictional High Court's view on the Target Plus scheme, the Tribunal accepted that the duty paid by debit through the scheme fell within the notification's credit mechanism. The impugned order allowing credit was sustained and the Revenue's challenge failed.

---

---

Issues: Whether Cenvat credit was admissible on Special Additional Duty paid through the Target Plus scheme under the applicable customs notification.

Analysis: The dispute turned on whether the additional duty debited under the Target Plus scheme could be treated as duty eligible for Cenvat credit. The Court noted that the present issue was scheme-specific and distinguished earlier decisions relating to DEPB and similar schemes. It relied on the jurisdictional High Court's ruling in respect of the Target Plus scheme, and also on the terms of the notification which permitted drawback or CENVAT credit of additional duty leviable under section 3 of the Customs Tariff Act. On that basis, the Court accepted that Special Additional Duty paid by debit under the Target Plus scheme fell within the credit mechanism contemplated by the notification.

Conclusion: Cenvat credit was admissible on the Special Additional Duty paid through the Target Plus scheme; the Revenue's challenge failed.

Final Conclusion: The impugned order allowing credit was sustained and the Revenue's appeal was dismissed.

Ratio Decidendi: Where the jurisdictional High Court has upheld eligibility of credit for Special Additional Duty debited under a specific export incentive scheme, and the governing notification permits credit of additional duty under section 3 of the Customs Tariff Act, such credit cannot be denied.

---