2008 (5) TMI 245

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....redit in respect of duty paid on inputs which is basic excise duty as well as Additional Excise Duty (Textile and Textile Ariticles) Act [AED (T&TA]. The final products of the appellant were exempted from payment of duty with effect from 9.7.04. As the final product of the appellant was exempted from payment of duty, the appellant paid basic excise duty from the account of AED (T&TA) in respect of inputs lying in stock or contained in the finished goods and under process. A show cause notice was issued to the appellant on the ground that the credit in respect of AED (T&TA) cannot be utilised for payment of basic excise duty and on this ground demand was raised. 3. The adjudicating authority confirmed the demand on the ground that appella....

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....nnot be utilised for payment of basic excise duty as held by the Tribunal in the case of K G Denim Ltd. v. CCE, Salem reported in 2008 (222) E.L.T. 464(Tri.-Chennai). 6. In the present case, the appellants were availing credit of duty paid in respect of inputs used in or in relation to manufacture of final products. The final product was exempted from payment of duty with effect from 9.7.2004. At that time, there was no balance in the RG 23A Part II account. The appellant paid basic excise duty from their AED (T&TA) account which is not permissible. Now, the question arises whether the demand as confirmed by the lower authorities is sustainable or not. The appellant was required to reverse the credit lying in their accounts in respect of....