Customs, Excise and Gold Tribunal - Delhi
C.C.E., Meerut vs M/S. Rama Vision Ltd. on 11 April, 2000
ORDER
K.K. Bhatia, Member (T):
1. The present Reference Application is filed by the Revenue in respect of the Final Order No. A/338/99/NB/SM dt, 4.5.99, in which the Bench following the three earlier decisions of the Tribunal allowed the modvat credit on 'HSD Oil' to the respondents.
2. The Revenue have filed the present Reference Application requesting the following questions of law to be referred to the Hon'ble High Court:
"(a) Whether HSD can be taken as input as mentioned in the Chapter-V-AA of Central Excise Rules, 1944 & as defined under Rule 57-A of C.E. Rules, 1944.
(b) Whether the modvat credit can be allowed on the High Speed Diesel Oil falling under Heading No.27.10 of Central Excise Tariff Act, 1985 which cannot be taken as input & which is specifically excluded from the purview of the modvat under Rule 57-A of Rules."
3. It is observed that subsequently in terms of Clause (1) of Section 112 of the Finance Act, 2000, the provisions of which came into force on 12.5.2000, the modvat credit on HSD Oil has been denied with retrospective effect. In the case of M/s. Chemo Pulp Tissues vs. C.C.E., Meerut reported in 2000 (119) ELT 715 (Tri.-LB), these provisions have been reported as follows:
"Notwithstanding anything contained in any rule of the Central Excise Rules, 1944, no credit of any duty paid on high speed diesel oil at any time during the period commencing on and from the 16th day March, 1995 and ending with the day, the Finance Act, 2000 receives the assent of the President, shall be deemed to be admissible".
4. It would be observed that by enacting the above provisions, it has been mandated that no credit on any duty paid on 'high speed diesel oil' shall be deemed to be admissible at any time during the period commencing from 16.3.95 to 12.5.2001.
5. In view of the above enactment by the Parliament, the present Reference Application has become infructuous. It would be open to the Revenue to resort to the action as per law in terms of the above provisions. The Reference Application is accordingly, dismissed as infructuous.
(Announced and dictated in the Court)