2011 (7) TMI 276

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.... Present for the Respondent: Shri R.P.Jindal, Consultant   PER: M.VEERAIYAN   This is an appeal by the department against the order of the Commissioner (Appeals) No. 16/CE/Appl/DLH-IV/2006 dt.15.2.06.   2 Heard both sides.   3 The respondents are engaged in the processing of cotton, manmade and hosiery fabrics falling under chapter headings 52.07, 55.14 and 60.02 ....

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....ts and directing them to pay duty through PLA during the period of two months. The respondents who are availing the deemed credit utilized the credit during the period of debarment in violation of order dt.31.1.02 and 20.9.02. The original authority accordingly confirmed the demand of Rs.19,81,917/- after disallowing the deemed credit for the period February and March, 02 and a sum of Rs.23,96,731....

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....credit is not the same as treatment for other credit available in terms of Rule 3 of Cenvat Credit Rules. The credit becomes available for utilization only at the time of clearance of final products and is proportion of the duty liability on the final products. As the notification issued by the Central Government was permitting utilization of the deemed credit, the same cannot be denied by the ord....

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....ondents have utilized the credit in violation of debarment orders issued under the Central Excise Rules. The original authority has only debarred the credit for two months in each case. We find that normally the deemed credit was available at the time of clearance of the final products. In other words the credit which was deferred by the original authority is deemed to have been restored after two....