COMMISSIONER OF CENTRAL EXCISE Vs. SAURASHTRA CHEMICALS LTD

JUDGEMENT

(1.) The appellant-revenue has proposed the following three questions which are reproduced verbatim as proposed :

(2.) Heard Mr. J. M. Malkan on behalf of the appellant. As can be seen from impugned order of Tribunal dated 20-8-2004 the limited controversy between the parties was that the respondent-assessee received a generator (capital goods) at their factory premises on 20-10-1998 but the same was not installed prior to 1-4-2000. The respondent-assessee had paid countervailing duty to the extent of Rs. 15,60,072.28 on the generator so imported, and Look credit of 50% of the said amount in 2000-2001 and the remaining 50% balance in the next financial year. The case of the revenue was that on the date of receipt of the capital goods by virtue of notification which was in force on the said day the assessee could avail credit of only 75% of the duty paid and hence, the assessee could have taken only 50% of 75% entitlement, and not 50% of the total amount of countervailing duty paid by taking advantage of amended provision which allowed such availment.

(3.) Both Commissioner (Appeals) and Tribunal have disagreed with the view expressed by the appellant- Commissioner.