Basic excise duty credit may be used for textile additional excise duty, following binding precedent and board clarification.

Credit of basic excise duty could be used to pay additional excise duty under the Textiles and Textile Articles Act, 1978. The HC followed an earlier binding view holding that such utilisation was permissible and relied on the Central Board of Excise and Customs clarification supporting that position. The issue was answered in favour of the assessee and against the Revenue.

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Issues: Whether credit of basic excise duty could be utilised for payment of additional excise duty leviable under the Textiles and Textile Articles Act, 1978.

Analysis: The question was answered by following the earlier binding view that such utilisation of basic excise duty credit was permissible. The clarification issued by the Central Board of Excise and Customs was also relied upon to support the same position.

Conclusion: The issue was answered in favour of the assessee and against the Revenue.

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