CENVAT credit for Additional Excise Duty was upheld, with rebate treated as consequential relief on exports.

CENVAT credit under Rule 57AB(1)(a) was treated as usable for payment of Additional Excise Duty, because the phrase "any duty of excise" was read broadly and beneficially, without importing restrictions from a different notification regime. On that basis, rebate or refund of the duty paid on exported goods remained available as consequential relief. The note also states that maintainability objections failed where the real dispute concerned the legality of credit utilisation, with rebate flowing from that determination.

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Issues: (i) Whether the appellants could use Basic Excise Duty CENVAT credit for payment of Additional Excise Duty on exported goods and remain entitled to rebate or refund of the duty paid. (ii) Whether the appeals before the Tribunal were maintainable when the dispute concerned rebate as consequential relief.

Issue (i): Whether the appellants could use Basic Excise Duty CENVAT credit for payment of Additional Excise Duty on exported goods and remain entitled to rebate or refund of the duty paid.

Analysis: Rule 57AB(1)(a) permitted utilisation of CENVAT credit for payment of any duty of excise, and the expression was held wide enough to include Additional Excise Duty. The earlier restriction relied upon by the appellate authority had been linked to notifications that were applicable to a different regime and did not control the present claim. The provision was construed as a beneficial provision and not in a manner that would curtail the assessee's entitlement where the language itself did not prohibit such utilisation.

Conclusion: The use of Basic Excise Duty CENVAT credit for payment of Additional Excise Duty was valid, and the refund or rebate claims were rightly allowed.

Issue (ii): Whether the appeals before the Tribunal were maintainable when the dispute concerned rebate as consequential relief.

Analysis: The core dispute related to the legality of utilisation of CENVAT credit for discharge of duty, while rebate or refund was only a consequential consequence of that determination. On that footing, the objection to maintainability could not stand.

Conclusion: The appeals were maintainable before the Tribunal.

Final Conclusion: The orders denying relief were set aside and the adjudicating authority's orders granting rebate or refund were restored, with consequential relief available in law.

Ratio Decidendi: Where the governing rule permits utilisation of CENVAT credit for payment of any duty of excise, the credit may be used for Additional Excise Duty unless a valid restriction applies, and such a provision must be construed beneficially in favour of the assessee.

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