2002 (1) TMI 1030

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....Assistant Commissioner as per his order has disallowed the Modvat credit amounting to Rs. 3,40,507.78 availed on HSD oil during the period from September to November 1997 and ordered to reverse the same if credit is unutilised. He also held that if the credit had already been utilized, the same should be paid in cash. Against that order, the party has filed an appeal before the first appellate authority. The Commissioner (Appeals) has allowed the appeal filed by the party holding that the Modvat credit availed by the appellants on HSD oil under Rule 57(B) cannot be denied to them, following the decision of the Tribunal in the case of M/s. BPL Display Devices Ltd. v. CCE, Meerut reported in 1999 (34) RLT 546 (CEGAT). Not being satisfied with....

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.... of the President, shall be deemed to be admissible. (2) Any action taken or anything done or purported to have been taken or done at any time during the said period under the Central Excise Act or any rules made thereunder to deny the credit of any duty in respect of high speed diesel oil, and also to disallow such credit to be utilised for payment of any kind of duty on any excisable goods shall be deemed to be, and to always have been, for all purposes, as validly and effectively taken or done, as if the provisions of sub-section (1) had been in force at all material times and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority (a)    &nbsp....

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....redit was disallowed by the authorities below, the assessee could not have filed an appeal for allowing the credit of duty in view of the wordings of Section 112(2)(a) and the appeal filed by the assessee for availing the Modvat credit is not entertainable. Since this appeal is filed by the Revenue for disallowing the credit, appeal deserves to be allowed. 7. Shri Ravi Shankar submits that if a provision of a taxing statute can be reasonably interpreted in two ways, that interpretation which is favourable to the assessee has got to be accepted in view of the decision of the Supreme Court in the case of Commissioner of Income-Tax, West Bengal II v. Naga Hills Tea Co. Ltd., reported in ITR 1973 Vol. 89 at Page 236. 8. I have caref....