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TMI Blog2011 (3) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... - Hence, set aside the impugned order and allow the appeal with consequential relief to the appellant. - E/1837/06 - A/552/2011-WZB/AHD - Dated:- 16-3-2011 - Mrs. Archana Wadhwa, Mr. B.S.V. Murthy, JJ. Appellant : Shri P.M. Dave, Adv. Respondent : Shri I. Ahmed, SDR Per: Mrs. Archana Wadhwa: After hearing both the sides, we find that the appellant, which was a DTA unit, was converted to 100% EOU w.e.f. 27.06.03. When the appellant was a DTA unit they were receiving various inputs, on which they were availing the benefit of modvat credit. Such inputs were being sent by them to their job worker under the cover of [Rule 3(4)] challans. The said goods after being manufactured by the job worker was being returned to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TA unit. The liability of the appellant to reverse the cenvat credit arose immediately on the day when it was converted into a 100% EOU, because of the fact that the processed inputs had not been received back by them by that time. 5. On an appeal against the above order, Commissioner (Appeals) accepted the appellant s stand that the goods cleared by 100% EOU cannot be held to be either exempted or chargeable to nil rate of duty so as to attract the provisions of Rule 6(1) of Cenvat Credit Rules, 2002. As such he held that the goods manufactured by the appellant under 100% EOU status were neither exempted nor chargeable to nil rate and their status cannot be equated with the goods cleared without payment of duty. 6. Having held in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the submissions made by both the sides, we agree with the learned advocate for the appellant. Admittedly the only issue was availability of modvat credit in respect of the inputs used in the manufacture of the final product cleared for export. Having held in favour of the appellant on the above disputed issue, the Commissioner (Appeals) should have allowed the appeal. The issue whether such modvat credit would be of any use to the appellant or not was not the basis of the appellate proceedings, neither were the same subject matter of adjudication. As such Commissioner (Appeals) has admittedly travelled beyond the scope of the allegations made in the show cause notice. 10. In any case we have seen said Rule 17 of the Cenvat Credit R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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