TaxTMI 
TaxTMI 
2005 (5) TMI 484
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....d 5513.29, Woollen Blankets/Shoddy Blankets under 6301.20, Shoddy Shawl under sub-heading 6202.00 of Central Excise Tariff Act, 1985 and availing Cenvat credit on the inputs and capital goods as per Cenvat Credit Rules, 2002.  2.Notification No. 24/94-C.E. (N.T.), dated 20-5-94 issued under erstwhile Rule 57A of Central Excise Rules, 1944, specifies the final product viz. Fabrics of Cotton or man-made fibre subjected to any process or whether processed or not falling under Chapter 52, 54, 55 and 58.02, 58.06 of Central Excise Tariff Act, 1985 in respect of which the credit of :- (i) the duty of excise under Central Excise Act, 1944 (ii) the additional duty of excise under S....
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....First Schedule to the Tariff Act leviable under the Act; (ii) the duty of excise specified in the Second Schedule to the Tariff Act; (iii) the additional duty of excise leviable under Section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978; (iv) The additional duty of excise leviable under Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957; (v) The national calamity contingent duty leviable under Section 136 of the Finance Act, 2001; and (vi) The additional duties leviable under Section 3 of the Customs Tariff Act, equivalent to the duty of excise specified unde....
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....(N.T.), dated 28-2-99 as amended by Notification No. 10/2000-C.E. (N.T.), dated 1-3-2000 further read with sub-rule 6(b) of Rule 3 of Cenvat Credit Rules, 2002, the assessee was not entitled to use the Cenvat Credit of Additional Excise duty (T&TA) towards payment of Basic Excise Duty and Additional Duty (GSI) on final product. As per the above said provisions of Rules and Notifications, the assessee can utilize the credit of Additional Excise Duty (T&TA) towards the payment of Additional Excise duty only. However, the assessee has utilized the credit of Additional Excise Duty (T&TA) of Rs. 2,65,76,666/- towards the payment of basic excise duty and Additional Duties of Excise (GSI) during the period from January, 2003 to April, 2003 : &e....
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....5,76,666/- together with interest under Sec. 11AB of the Central Excise Act and imposing a penalty of Rs. 5 lakhs on the assessee and Rs. 50,000/- on its Dy. General Manager. He, however, dropped the duty demand of Rs. 7,85,336/- since it was already included in the duty amount confirmed. Hence this appeal.  6.We have heard both sides. We see force in the appellants' submission that additional excise duty paid under the Additional Duties of Excise (Textiles and Textile Articles) Act is available for utilization towards payment of additional excise duty under the Additional Duties of Excise (Goods of Special Importance) Act; in the light of the Tribunal's decision in Reliance Industries Ltd. v. CCE [2002 (150) E.L.T. 479 (T) and Gras....
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.... (2) Under the Modvat Rules as then existed prior to 1-4-2000 right accrued to the assessee to take credit of additional excise duty paid on inputs and utilise it for payment of duty on any other final product. This was the provision of 4th proviso to Rule 57F as it stood from 16-3-1995 until 1-3-97 and therefore, this provision continued in the proviso to Rule 57F(12). The right to accrue additional excise duty paid on inputs for discharging duty liability on any other final product vested in the appellants on the date of receipt of inputs in their factory. If Rule 57AG(1) which provides that any amount of credit earned by a manufacturer under Rule 57A prior to 1-4-2000 and remaining unutilised on that day shall be ....