2019 (4) TMI 990

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....ty of Excise (goods of Special Importance) Act, 1985 paid before 01.04.2000 shall be utilized towards payment of duty of excise leviable under the said Additional Duties of Excise (GSI) Act on any final product manufactured by manufacturers or for payment of such duty on inputs themselves if such inputs are removed as such or after being partially processed. During the period from 01.08.1997 to 01.06.1998, Additional Duty of Excise (GSI) was leviable on processing of tyre cord fabrics used within the factory. However, during the said period, the assessee have removed processed tyre cord fabrics without payment of duty resulting in short payment of Additional of Excise Duty. Therefore, two demand show cause notice were issued to the responde....

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.....1998 and the said credit accrued to the respondent prior to 01.04.2000, therefore, in terms of Rule 3(7)(b) of the Cenvat Credit Rules, 2004, the respondent is not entitled to take cenvat credit. In these terms, the order of the Ld. Commissioner is not correct. Therefore, the impugned order is to be set-aside. 4. On the other hand, the Ld. Counsel for the Respondent submits that although the respondent reversed the cenvat credit on 31.12.2004 after the adjudication order, wherein demand of AED(GSI) confirmed against the respondent alleging that the intermediate product i.e. Rubberized Tyre Cord Fabric/Calendered Type Cord Warpsheet, Captively used by the Respondent falls under Heading No. 59.02 of the Central Excise Tariff Act, 1985 on wh....

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....rties, the short issue emerges before us is whether the AED(GSI) paid after 01.04.2000, Can the respondent utilized the same for payment of BED/SED or not? On consideration of the facts of the case, we find that in this case, it has been held by the Hon'ble Apex Court that they are not liable to pay AED(GSI). Therefore, whatever duty paid on account of AED(GSI) by the appellant is not AED(GSI), therefore, the respondent is entitled to avail cenvat credit of the same. 7. Moreover, as per the explanation to Rule 3(7)(b) of Cenvat Credit Rules, 2004 which is expected herein below for ready reference:- "Explanation - For the removal of doubts, it is hereby declared that the credit of the additional duty of excise leviable under section 3 of....