SPEEDWAYS RUBBER COMPANY Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellant filed this appeal whereby credit of Rs. 2,01,305/ - and credit of Rs. 25,766/ - and credit of Rs. 5,328/ - was denied to the appellant and imposition of penalty of Rs. 50,000/ -.

(3.) THE contention of the appellant is that Cenvat credit of Rs. 2,01,305/ - was denied on the ground that this credit is in respect of Additional Excise duty which can be utilized for the payment of AED(GSI). During the period in dispute, i.e. 1st April 2001 to Sep. 2001, the appellant availed the credit of AED(GSI) and utilized the same towards payment of Special Excise Duty. The contention of the appellant is that the Central Excise Credit Rules, 2004 (sic) (Cenvat Credit Rules, 2004) provides that credit of Additional Duty of Excise leviable under Section 3 of Additional Duties of Excise (Goods of Special Importance) Act, 1957 paid on 1st April 2000 may be utilized towards payment of duty of excise leviable under First Schedule or Second Schedule of Excise Tariff Act. The contention is that in view of this explanation provided under Central Excise Rules 2004, the appellant rightly utilized the credit of AED(GSI) towards payment of Basic Excise Duty as well as Special Excise Duty, therefore, the demand is not sustainable.