GOODYEAR INDIA LIMITED Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellant filed this appeal against the adjudication order passed by the Commissioner of Central Excise.

(3.) THE brief facts of the case are that the appellants are engaged in the manufacture of tyres and during the manufacture of tyres they are also manufacturing the rubberized cord fabric. The appellants are not paying any Additional Excise Duty under the Goods of Special Importance {hereinafter referred AED (GSI)} on the ground that the intermediate rubberized cord fabric is classifiable under Tariff Heading 59.06 of the Central Excise Tariff on which no AED (GSI) is payable. The matter travelled to the Tribunal and the Tribunal vide order dated 25.7.2003 held against the appellant. The appellant filed appeal before the Hon'ble Supreme Court, which was subsequently withdrawn. In pursuance to the decision of the Tribunal, the appellant paid the AED (GSI) on 24.1.2004 and taken the credit utilized for payment of duty. Show -cause notice was issued to the appellant on 9.6.2004 for recovery of the credit on the ground that utilization of AED (GSI) was irregular. Thereafter with effect from 1.3.03 by Section 86 of Finance Act 2 of 2004 the explanation to Rule 3(6) of the Cenvat Credit Rules, 2002 was amended retrospectively to the effect that Cenvat Credit could be taken only in respect of AED (GSI) paid on or after 1.4.2000. The adjudicating authority vide impugned order after relying upon this amendment confirmed the demand.