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TMI Blog2016 (3) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... /11872/2015 - Dated:- 22-12-2015 - MR. P.K. DAS, MEMBER (JUDICIAL) For the Petitioner : Shri Prakash Shah and Shri Rahul Gajera, Advocates For the Respondent : Shri J. Nagori, Authorised Representative ORDER PER : MR. P.K. DAS; After hearing both the sides and on perusal of the records, I find that the appellant is engaged in the manufacture of Textile Articles, classifiable under Chapter 58 and 60 of the Schedule to the Central Excise Tariff Act, 1985. The adjudicating authority disallowed the CENVAT credit amounting to ₹ 12,01,233/- alongwith interest and imposed penalty of equal amount of CENVAT credit for the period 01.4.2006 to 06.9.2009. 2. The learned Advocate on behalf of the appellant fairly subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the appellant has rightly taken CENVAT credit on the inputs received from 100% EOU, during the period 2006-07 to 2009 (i.e. August 2009). According to Revenue, as per amendment to Rule 3(7) of Cenvat Credit Rules, the appellant is eligible to avail credit on the Additional duty leviable under Section 3(1) of the Customs Tariff Act, which is equal to the duty of excise under Section 3(1) (a) of the Central Excise Act, on or after 07.09.2009. For the proper appreciation, relevant portion of the said Rule is reproduced below:- (7) Notwithstanding anything contained in sub-rule (1) and (7) sub-rule (4), - (a) CENVAT credit in respect of inputs or capital goods produced or manufactured, by a hundred per cent. export-oriented unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al to [X multiplied by [1+BCD/200) multiplied by (CVD/100)]: [Provided further that the CENVAT credit in respect of inputs and capital goods cleared on or after 07th September 2009 from an export oriented undertaking or by a unit in Electronic Hardware Technology Park or in a Software Technology Park, as the case may be, on which such unit undertaking or unit has paid (i) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, which is equal to the duty of excise under Clause (a) of sub-section (1) of section 3 of the Excise Act; 5. It is seen that the issue is no more res-integra in view of the decision in the case of Metaclad Industries vs. CCE, Mumbai (supra), followed by the earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the goods cleared from a 100% EOU to DTA is an excise duty as provided for in Section 3 of the Central Excise Act. For the purposes of arriving at the rate of duty, it has been prescribed in the said section that the rate of excise duty on goods cleared from an EOU shall be the aggregate of the customs duties leviable on like goods imported into India. Nevertheless, the levy is an excise levy and it does not in any way gets converted into a customs levy. Once this position in law is clearly understood, the issue becomes simples and clear. The excise duty levied under Section 3 of the Central Excise Act is an eligible duty for CENVAT credit under Rule 3 of the Cenvat Credit Rules, 2004, Similarly in the case of imported goods, the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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