9911796707
TMI Blog2006 (5) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... ared from M/s. GTN Textiles, Alwaye which is a 100% EOU. There are four invoices under which the inputs have been received. The issue is whether the appellants are entitled to take credit of the entire duty paid by the Alwaye unit while clearing the inputs to the appellants. In the impugned order, the Commissioner (Appeals), applying the first proviso to Notification No. 5/94-CE, has held that the credit shall be restricted to the extent of duty which is equal to the additional duty leviable on like goods. She has however, relied on the decision of the Hon'ble CEGAT, in the case of Vikram Ispat v. CCE, Mumbai-III - 2000 (120) E.L.T. 800 (T-LB). She modifies the OIOs in the following manner :- (i) In Appeal E/811/2004, by allowing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. We have gone through the records of the case carefully. The question is whether the entire duty paid on the inputs by the supplier is entitled for Modvat credit in the hands of the appellant. Here the input received is Yarn. The relevant portion of the Notification 5/94-C.E. (N.T.) is reproduced below :- Goods notified for purposes of credit of duty under MODVAT.- In exercise of the powers conferred by Rule 57A of the Central Excise Rules, 1944, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 177/86-Central Excises, dated the 1st March, 1986, the Central Government hereby specifies the final products described in column (3) of the Table hereto annexed and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undertaking or by a unit in an [Electronic Hardware Technology Park or Software Technology Parks] and used in the manufacture of final products in any place in India, shall be restricted to the extent of duty which is equal to the additional duty leviable on like goods under section 3 of the Customs Tariff Act, 1975 (51 of 1975). equivalent to the duties of excise specified under (i) and (ii) above paid on such inputs;" It can be seen that this Notification deals with the goods notified for purpose of Modvat credit. As per the first proviso, there is a restriction in respect of the credit to be taken. When there is a restriction, one can say that the entire duty paid should be given as Modvat credit. The restriction is to the extent of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
