2018 (10) TMI 891

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.... CE-NT as amended. The credit thus availed got accumulated till 1.3.2003 as the credit of AED(GSI) was allowed to be utilised only for payment of AED(GSI) levied on the final products. The final products cleared by them did not attract AED(GSI). With the introduction of explanation to Rule 3(6) of the Cenvat Credit Rules w.e.f. 1-3-2003, credit of AED(GSI), availed on inputs, was permitted to be utilized for payment of Basic Excise Duty on final Products. Accordingly, the appellants utilized the accumulated credit towards payment of Basic Excise Duty on their final products. 2. By Sub-section (3) of Section 88 of Finance Act (No. 2), 2004, Rule 3(6) of Cenvat Credit Rules, 2002 was amended with retrospective effect, it was provided that Ce....

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..../3113/2011. 3. The Ld. Counsel for the appellants submitted that the issue is squarely decided in their favour by the Mumbai Bench of the Tribunal in the case of CEAT Ltd 2010(254) ELT 349(tri-Mum) (in an appeal filed by the department against the Commissioners order where in proceedings initiated were dropped) wherein it was held that the impugned credit has been legitimately earned by the assessee procurement of inputs on payment of duty and used for payment of duty following the amendment of Cenvat Credit Rules 2002, under Budget 2003; in terms of the provisions enacted in 2004, the debits were held not amounting to duty and the assessee was required to meet the same obligation by payment from PLA; therefore, the credit needs to be rest....

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....over the credit availed prior to 2000 utilized for payment of AED (GSI) was evolved. The appellants have availed the credit prior to 2000 and also post 2000. In terms of recovery scheme, the appellants paid back the amount which represents the credit of AED (GSI) availed prior to 2000 and used for payment of duty. Therefore, the payment has been made twice. Therefore, the credit has been restored. The appellants have availed credit on proper documents only and not on the strength of TR-6 challans as contended by the Department. The restoration relates back to the originally availed credit and not to be considered as fresh availment on a separate set of inputs and documents. They relied upon the following case-laws: * Shyam Textile Mills &....