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TMI Blog2010 (3) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... i M. Veeraiyan, Member (T) Shri Rupender Singh, Advocate, for the Appellant. <?xml:namespace prefix = st2 /> Shri I. Baig, SDR, for the Respondent. [Order (Oral)]. - This is an appeal against the order of Commissioner (Appeals) No. 112/CE/Chd/08 dated 5-2-2008. 2. Heard both sides. 3.1 The relevant facts, in brief, are that the appellant procured inputs from M/s. V.S.G.M., a 100% EOU. The dispute relates to the extent of credit available to the appellant in respect of the inputs received from 100% EOU. 3.2 As a 100% EOU , the supplying unit was liable to pay duty in terms of the proviso to Section 3 of the Central Excise Act being "an a amount equal to the aggregate duties of customs which would be leviable un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Larger Bench decision in the case of Vikram Ispat has been explained and followed in several decisions of the Tribunal and he relies on one of them in the case of Parle Soft Drinks (P) Ltd. v. C.C.E., Chennai - 2004 (177) E.L.T. 584 (Tri.-Chennai). 5. Learned SDR reiterates the finding and reasoning of the Commissioner (Appeals). 6. I have carefully considered the submissions from both sides. The original authority held that "the admissibility of Modvat Credit received by the recipient manufacturing unit from 100% EOU is restricted to the duty paid on the inputs or the capital goods by them equivalent to the additional duty of customs on like goods or the actual additional duty of customs paid by the 100% EOU equivalent to the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of duty which is equal to the additional duty leviable on like goods. If the additional duty is less than the actual duty paid on the inputs cleared from 100% E.O.U., the manufacturer in India shall be eligible only for the credit equivalent to the additional customs duty. On the other hand if the duty actually paid by 100% E.O.U. on inputs cleared by them is less than the additional duty of customs payable on like goods the manufacturer shall be eligible only to the extent of actual duty paid by 100% E.O.U. The reading of first proviso to notification No. 5/94 does not indicate at all that the credit of specified duty shall be restricted to the components of additional customs duty actually paid by 100% E.O.U. as excise duty. Had t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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