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TMI Blog2018 (5) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... r Respondent (s): Shri Sameer Chitkara, Authorised Representative Per: Raju This appeal has been filed by M/s Banco Product (I) Ltd. against denial of CENVAT Credit on a part of the duty paid on the inputs received from a 100% EOU. 2. Learned Counsel for the appellant argued that they are receiving 'Aluminium Tube and Core' from 100% EOU and as per Rule 3(7) of the CENVAT Credit Rules, 2004, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Learned AR relies on the impugned order. 4. We have gone through the rival submissions. We find that Rule 3(7) of the CENVAT Credit Rules prescribes that in respect of goods received from the 100% EOU, the credit can be availed in the manner prescribed as follows: - 'Fifty percent. of [X multiplied by (1+BCD/100) multiplied by (CVD/100), where BCD and CVD denotes of ad valorem rates, in perce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 3 of the Customs Tariff Act under sub-section (1), an additional duty of customs is levied which is equal to the excise duty levied on like articles produced in India. Under sub-section (5), another additional duty of customs is levied at a rate not exceeding four per cent. of the value of the imported articles so as to counterbalance the sales tax/value added tax or any other charges on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial provision for reducing the cascading effect of taxation and if the object of CENVAT has to be sub-served, the credit should be made available in respect of both the additional duty of customs. The economic rationale for the same has already been explained in the preceding paragraph. 5.4 The clarification/amendment made in the said Rule in 2009 is only for the purpose of removal of doubts and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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