Decided on August 21,2019

Rasoi Ltd. Appellant
UNION OF INDIA Respondents


- (1.) On 18th October, 2016 the appellant company ("the appellants") wrote the following letter to the Assistant Commissioner, Central Excise, Kolkata-V, Commissionerate. "As you are aware that we have already commenced manufacturing of Corrugated Boxes and Baby Care products at out factory situated at Sahipur, Banganagar, 24-Parganas (South). We may also manufacture other dutiable excisable goods at the said factory premises in terms to come.
(2.) In order to discharge excise duty on the said excisable goods, we intend to utilise the credit accumulated under the Money credit Scheme (captured in RG 23B Part II register, duly reflected in the monthly Excise returns under the remarks column). The said money credit was accumulated by us in terms of Notification No. 45/89-CE dated 11.10.1989. The Notification is not existence and therefore, the said money credit balance being vested right, is now sought to be utilised by us against discharge of duty on the said excisable goods. As a responsible corporate assessee, we remain committed to operate in accordance with the provision of the law. Therefore, we would like to seek your kind approval before embarking on the proposed utilisation of the accumulated money credit balance lying with us so as to avoid any disputes with the department at a later date. You are requested to kindly revert to the proposed utilisation within 15 days from the date of this letter. We are writing this letter strictly without prejudice to any of our rights and contentions."
(3.) On 11th November, 2016 the Assistant Commissioner, Central Excise, Kolkata-V made the following reply: - "The issue has been thoroughly scrutinised. The erstwhile rule 57K-57P of Central Excise Rules 1944 read with notification 45/89-CE (NT) dated 11/10/1989 prohibits the utilisation of credit in the clearance of any final product, other than the final product in relation to which such inputs were intended to be used in terms of the said scheme".;

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