Duty debited in R.G. 23 Part II counts as duty paid for credit incentive under Notification No. 116/84-C.E.

Duty debited in R.G. 23 Part II under Notification No. 201/79-C.E. was treated as duty paid for computing the credit incentive under Notification No. 116/84-C.E. The governing clarification stated that Notification No. 201/79-C.E. functioned as an exemption by way of credit for duty equivalent to that paid on inputs, and that both PLA duty and duty debited in R.G. 23 Part II were to be counted when calculating the incentive. The suggested distinction between PLA payments and R.G. 23 Part II debits was rejected, and entitlement to the incentive was upheld.

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Issues: Whether duty debited in R.G. 23 Part II under Notification No. 201/79-C.E. dated 04-06-1979 could be treated as duty paid for computing the credit incentive available under Notification No. 116/84-C.E. dated 11-05-1984.

Analysis: The governing clarification and circular provided that Notification No. 201/79-C.E. operated as an exemption by way of credit in respect of duty equivalent to that paid on inputs, and that for computing the credit available under Notification No. 116/84-C.E., duties paid from both PLA and R.G. 23 Part II maintained under Notification No. 201/79-C.E. were to be taken into account. On that basis, the distinction suggested between duty paid through PLA and duty debited in R.G. 23 Part II was rejected for the purpose of determining entitlement to the incentive.

Conclusion: The respondents were held entitled to the benefit of Notification No. 116/84-C.E., and the appeals were rejected.

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