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TMI Blog2015 (10) TMI 1970X X X X Extracts X X X X X X X X Extracts X X X X ..... /2004-C.E. (N.T.), dated 6-9-2004 did not in any way affect the eligibility of the EOU for taking Cenvat credit; it only allowed them the facility to pay duty either by debit to the PLA or by debit to the Cenvat credit account. Prior to 6-9-2004, the EOUs could only pay duty through the PLA, Thus, the eligibility of EOUs for taking Cenvat credit of duty paid on the inputs received is in no way related to the issuance of Notification No. 18/2004-C.E. (N.T.). - it does not necessarily mean that an EOU has to either procure all their goods duty free or procure all their goods on payment of duty. The sentence “Some EOU’s have to procure their raw materials on payment of duty also” contained in the said para makes it clear that EOUs can procure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudicating authority held that vide Circular No. 54/2004-Cus., dated 13-10-2004 the Board has stated that an EOU has an option either to procure the goods from DTA without payment of duty under CT-3 procedure or to procure the goods on payment of duty and avail Cenvat credit. Based thereon and in view of the fact that appellant have been procuring some goods duty free, the adjudicating authority held that as they were allowed only one of the two options they were debarred from procuring goods on payment of duty and so the credit of duty on furnace oil was disallowed. 3. The issue involved in this case is rather straight forward and therefore with the consent of the ld. AR, we proceed to decide the appeal waiving pre-deposit. 4. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EOUs (including STP/EHTP units) an option either to procure the goods from DTA without payment of duty under CT-3 procedure or to procure the goods on payment of duty and avail CENVAT credit. The credit could be utilised by them as per the Cenvat Credit Rules, 2004, including payment of duty on their DTA sales . 4. A plain reading of the above para reveals that it does not necessarily mean that an EOU has to either procure all their goods duty free or procure all their goods on payment of duty. The sentence Some EOU s have to procure their raw materials on payment of duty also contained in the said para makes it clear that EOUs can procure their raw material either duty free or on payment of duty. Be that as it may, the legal position ..... X X X X Extracts X X X X X X X X Extracts X X X X
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