2018 (12) TMI 1422

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....3 passed in F.No.198/75-76/2011 RA-CX issued by the 1st Respondent and quash the same. WP (MD) No 14523 of 2013:- Prayer : To issue a Writ of Certiorari, calling for the records relating to the orders passed in Order in Revision No.228 dated 06.03.2013 passed in F.No.198/75-76/2011 RA-CX issued by the 1st Respondent and quash the same. 2.Heard the counsels for both parties and perused the records including the Show Cause Notices, Orders in Original, Orders in Appeal and the Orders in Review. It is my considered view that the orders had not adequately focussed on the actual issue and strayed on irrelevancies. Therefore, only the discussions relevant to the issue on hand are consciously discussed in this Order. 3.M/s.Valli Textile Mills a....

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....final products except cotton yarn. Consequently, it was alleged that the excess cenvat credit in the books of accounts of the petitioner statutorily lapses owing to their choosing to avail exemption under Notification No. 30/2004 and ought to be purged from their accounts. But the allegation was not backed by the provision under which the excess credit available on the books as on 01.01.2005 lapses. Instead, it was alleged that the same was used for payment of duty on export goods and illegitimately claimed back as rebate. It was the case of the revenue that the approximate amount of Rs. 92 lakhs lying in the credit of the petitioner as on 01.07.2007 is the carried over credits from 01.01.2005 that ought to have been purged. The cut of date....

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....1.03.2007. Cenvat Credit is a legitimate credit scheme. It normally allows credit of taxes paid on inputs and capital goods. To read it strictly in the context of cascading taxes may defy the legislative intentions. It may be noted that the scheme also provides for allowing deemed credits at rates fixed by the government. The government is also empowered to impose restrictions on the use of legitimate cenvat credit. 9.Therefore, unless it is demonstrated or held that the effect of the Notification No.10/2007 CE-NT dated 01.03.2007 is retrospective in character which does not assert so, the availing of lying cenvat credit, while choosing to avail exemption, for payment of duty on export goods against claim of rebate of duty under Rule 18 of....