9911796707
TMI Blog2010 (6) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... p this old appeal pending any longer. 2. We have examined the records and heard learned SDR. 3. The appellant, a manufacturing unit in the Domestic Tariff Area (DTA), procured certain inputs from a 100% Export-Oriented Unit (EOU) namely M/s. Futura Polymers Ltd. during the period from September 2000 to February 2001. The CVD element of the duty of excise paid by the EOU on such inputs was Rs. 9,99,177/- in terms of the proviso to Section 3(1) of the Central Excise Act. Such amount of CVD (additional duty of customs leviable under Section 3 of the Customs Tariff Act) had been worked out at 50% of the CVD payable on like goods if imported into India. The appellant, however, chose to take credit of duty amounting to twice the above amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Customs Tariff Act, 1975 paid on such inputs. The learned SDR has also referred to an identical provision contained in Notification No. 5/94-C.E. (N.T.), dated 1-3-1994. This provision appears in the form of a proviso to Notification No. 5/94 and is pari materia with the afore-mentioned provision of Notification No. 21/99. The learned SDR has also relied on GTN Textiles Ltd. v. Commissioner of Central Excise, Hyderabad-II - 2006 (205) E.L.T. 1060 (Tri.-Bang.) wherein the first proviso to Notification No. 5/94-C.E. (N.T.) was considered and it was held that the assessee was not entitled to MODVAT credit of the duty paid on inputs supplied by EOU in excess of the amount of CVD actually paid by the EOU. He has therefore, prayed for sust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise paid by the EOU on the inputs. The entitlement for the manufacturer of final product is equal to the additional duty leviable on like goods if imported into India, to the extent paid on the inputs. Identical provision is found in the first proviso to Notification No. 5/94-C.E. (N.T.), which was considered by a Coordinate Bench in GTN Textiles Ltd.'s case and it was held that the manufacturer of final product could take MODVAT credit on inputs supplied by EOU to the extent CVD element of the measure of the duty of excise was paid on the inputs. The CVD element paid by the EOU, in the present case, is Rs. 9,99,177/- only for the period of dispute. The appellant, recipient of the inputs supplied by the EOU, cannot claim CENVAT credit in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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