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TMI Blog2021 (9) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... MODVAT credit availed inputs which were removed as such to 100% EOU. Against such order, the assessee filed appeals before the Hon'ble High Court and vide judgment in CMA No. 2197 to 2201/2005 dated 26.9.2018, the Hon'ble High Court remanded the matter to the Tribunal for fresh consideration and also to consider the applicability of the judgment of the Hon'ble High Court of Karnataka in the case of CCE Vs. Solectron Centum Electronics Ltd. - 2014 (309) ELT 479 (Kar.). The parties herein are referred to as assessee and department for the sake of convenience. 2. Brief facts are that the assessee is engaged in manufacture of CNC lathes machines and parts classifiable under sub-heading 8457, 8458, 8459, 8466 of CETA, 1985. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich MODVAT credit has been availed and thereafter removed against CT-3 certificates to a 100% EOU. 4. The Hon'ble High Court while remanding the matter referred to the judgment of the Hon'ble High Court of Karnataka in Solectron Centum Electronics Ltd. - 2014 (309) ELT 479 (Kar.). In para 16 it has been observed by the Hon'ble High Court as under:- "In the light of the decision in the case of Solectron Centum Electronics Ltd., we are of the considered view that the matters require reconsideration by the Tribunal. Though it may be true that the decision was not available when the Tribunal decided and passed the impugned common order, nevertheless, when the matter travelled upto the Supreme Court in the case of Lakshmi Automat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the 14th September, 1992; or (c) manufacture or development of software by a unit in Software Technology Parks (hereinafter referred to as user industry) under Software Technology Parks (STP) Scheme notified by the notification of the Government of India in the Ministry of Commerce No. 33/(RE)/92-97, dated the 22nd March, 1994, from the whole of, (i) the duty of excise leviable thereon under section 3 of the Central Excise Act, 1944 (1 of 1944), and (ii) the additional duty of excise leviable thereon under sub-section (1) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), subject to the following conditions, namely :- (1) the user industry, in the case of, (i) hundred per cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se for intermediate supply / deemed export (b) Deemed exports drawback (c) Refund of Terminal Excise Duty 8. As per Notification No. 1/95, as amended, 100% EOUs are required to procure excisable goods, without payment of excise duty under the cover of CT-3 certificate from the factory of manufacture. The department alleges that the clearances effected by the appellant without payment of duty to 100% EOUs under the cover of CT-3 certificate are not proper as per the above notifications, since the spares (inputs) were only bought out items of the appellant. According to department, the condition stipulated in Notification 1/95 that the procurement shall be from the factory of manufacture has not been satisfied. Hence Show Cause Notices w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onics Ltd. (supra). 11. The Tribunal in the case of Lakshmi Automatic Loom Works Ltd. Vs. CGST & Central Excise vide Final Order Nos. 42161 to 42164/2021 dated 30.8.2021 has allowed the appeals by applying the decision in the case of Solectron Centum Electronics Ltd. (supra). 12. The learned AR Shri Arul C. Durairaj supported the findings in the impugned order. 13. Heard both sides. 14. The issue stands settled by the decision of the Hon'ble High Court of Karnataka in the case of Solectron Centum Electronics Ltd. (supra) wherein it has been observed as under:- "15. In so far as the inputs are concerned, it is not in dispute that the assessee while purchasing the said goods for its DTA unit has paid duty. It is only when those inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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