2007 (4) TMI 264 - SCH - Central Excise

Appeal dismissed; identical excise duty and MODVAT credit make post-credit duty payment revenue neutral, refund denied

SC dismissed the appeal and ruled against the revenue, holding that where excise duty paid and Modvat credit availed are identical, payment of excise duty ... Cenvat/Modvat - Revenue contended that assessee had wrongly availed the modvat credit and was liable to refund the amount - Held that:- Excise duty paid and the Modvat credit availed were identical and therefore consequences of payment of excise duty after availing Modvat credit was revenue neutral - appeal is dismissed leaving the question of law open - Decided against Revenue. The Supreme Court dismissed the Revenue's appeal regarding Modvat credit availed by the assessee, leaving the question of law open. The Revenue claimed the assessee owed Rs. 26,77,320 for wrongly availing the credit, but the assessee argued it was revenue neutral as excise duty paid and Modvat credit availed were identical. No costs were awarded, and the Revenue was granted liberty to mention the matter if the submission was found incorrect upon verification.