2007 (11) TMI 643 - AT - Central Excise

Summary

Issues involved: Appeal filed by Revenue against dropping of proceedings regarding demand of duty on cenvat credit availed by respondent for goods cleared to EOU without payment of duty.

Summary:
The issue in this case revolves around the demand of duty on cenvat credit availed by the respondent for goods cleared to an EOU without payment of duty. The Adjudicating authority dropped the proceedings based on various Circulars and Notifications. The Revenue appealed to the Ld. Commissioner (Appeals) who considered the contravention of Cenvat Credit Rules and the benefit awarded under Notification No. 43/2001 CE(NT) dated 26.1.2001. The Ld. Commissioner (Appeals) found that the Rule 3(4) of the Cenvat Credit Rules, 2002 is not applicable for goods cleared for export and upheld the order of the Adjudicating Authority. The Ld. Commissioner (Appeals) correctly followed the law and Circulars issued by the Central Board of Excise and Customs. The Tribunal's decision in a similar case was also cited to support the findings. Therefore, the impugned order was upheld, and the appeal filed by the Revenue was rejected.

In conclusion, the judgment highlights the interpretation and application of Cenvat Credit Rules in cases of goods cleared for export to EOUs without payment of duty. The decision emphasizes the importance of following relevant Circulars and Notifications in determining the duty liability in such scenarios.