2008 (7) TMI 208

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....ed credit as anything other than the credit under Rule 57A? (iii)Whether in the Cenvat Scheme, there is no outer time limit from the date of receipt of raw materials or from the date of taking credit beyond which the credit taken could not be utilized? (iv)Whether, in the facts and circumstances of the case, the utilization of credit amounts to payment of duty and the refund, if any, due shall be subject to the time limit prescribed for claim for refund? (v)Whether the credit lying in RG-23 account accumulated arising out of exports is akin to credit in the PLA and the time limit shall not apply? 2. Learned advocate for the appellant has read extensively from the Memorandum of Appeal to urge that the impugned order of the Tribunal dated....

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....is a scheme by which cascading effect of incidence of taxes is sought to be avoided. Normally, the actual duty paid on the input is permitted to be taken as credit and the same should be utilize towards payment of duty on the final product in certain cases, the Central Govt. has been empowered to specify the rate at which the CENVAT Credit can be taken in respect of certain inputs. The deemed credit stands on the same footing as actual credit in so far as the law and procedure regarding the taking of the Credit utilization of the same and refund of the same. There is no warrant to treated the deemed credit as anything other than the credit under Rule 57A. The appellant has preferred the refund claims in terms of Rule 57F. 7.1 I find that t....

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.... 'Manner of utilization of inputs and the credit allowed in respect of duty paid thereon'. Sub-rule (13) of Rule 57F of the Rules as is material for the present reads as under: "(13) Where any inputs are used in the final products which are cleared for export under bond or used in the intermediate products cleared for export in according with sub-rule (4), the credit of specified duty in respect of the inputs so used shall be allowed to be utilised by the manufacturer towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and where for any reason such adjustment is not possible, the manufacturer shall be allowed refund of such amount subject to such safeguards, conditions and l....

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....tc. the deemed credit can be utilized in the manner specified in sub-rule (13) of Rule 57F of the Rules and the wordings of Paragraph No.3 of the Notification are identical in terms, except for the fact that the same appear as Proviso in Paragraph No.3 of the Notification. For the present it is the latter part of sub-rule (13) and the Proviso in Paragraph No.3 of the Notification which is material. 8. In both, the Rules and the Notification, the latter part provides that where for any reason adjustment of deemed credit is not possible, the manufacturer shall be allowed refund of such amount of deemed credit subject to the safeguards, conditions and limitations as may be specified by the Central Government by Notification in the Official Ga....