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TMI Blog2018 (4) TMI 1656X X X X Extracts X X X X X X X X Extracts X X X X ..... by the 100% EOU is equivalent to the aggregate of the Customs duty under Section 3 of the Central Excise Act. But for this reason alone the excise duty leviable on such goods cannot be misconstrued as duty of customs and the legal reality is that the duty levied under Section 3 of the Central Excise Act on the goods manufactured by 100% EOU is Central Excise only even when the measure of levy is the Customs duty. The Government is fully convinced that entire duty paid by the applicant in respect of the inputs at the rate of 21% is duty of excise only and the rebate of the same is allowed under Rule 18 of the C.E.R., 2002 and Notification No. 21/2004-C.E. (N.T.), as the compliance of these two governing provisions are not doubted by the lowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejected. Being aggrieved, the Revision Application has been filed mainly on the ground that EOUs are governed by the provisions of Section 3 of the Central Excise Act which provides for levy of Central Excise duty on excisable goods from EOU and, therefore, rebate of full duty of excise paid by them is admissible to them. They have also placed reliance on the following case laws : (i) Kumar Arch Tech Pvt. Ltd. - 2013 (290) E.L.T. 372 (Tri.-L.B.) (ii) Vikram Ispat - 2000 (120) E.L.T. 800 (Tri.-L.B.) (iii) Metaclad Industries - 2013 (289) E.L.T. 381 (Tri.-Mumbai) 3. Personal hearing was held on 5-4-2018. Sh. S.J. Vyas, Advocate, appeared for personal hearing on behalf of the applicant and reiterated the grounds of revision as stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the duty levied under Section 3 of the Central Excise Act on the goods manufactured by 100% EOU is Central Excise only even when the measure of levy is the Customs duty. A large bench of CEGAT in the case of Vikram Ispat v. CCE, Mumbai-III - 2000 (120) E.L.T. 800 (Tribunal-L.B.) has also clearly held that duty levied on the goods manufactured and cleared by 100% EOU to the D.T.A. is a duty of excise and not a duty of customs on account of a measure being the Customs duty provided in proviso to Section 3(1) of the Central Excise Act, 1944. Accordingly, the Government is fully convinced that entire duty paid by the applicant in respect of the inputs at the rate of 21% is duty of excise only and the rebate of the same is allowed under R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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