TaxTMI 
TaxTMI 
2010 (1) TMI 465
X X X X Extracts X X X X
X X X X Extracts X X X X
....uantity of Pet packing resin. They procured the same from 100% EOU. The duty payable on the clearances made from 100% EOU is based on Customs Tariff. But for the exemption under Notification No. 2/95-C.E., dated 4-1-95, the consignment received by them should have paid a duty of Rs. 1,31,200/- (7346.8082 BCD + 45,80.32 AED + 13,73.29 SAD) but because of Notification No. 2/95-C.E., dated 4-1-95 they were required to pay only 50% of the customs duty equivalent and, therefore, they paid Rs. 65,600/-. The respondent took a credit of Rs. 1,31,200/- even though the supplier has actually paid an amount of Rs. 65,600/-. However realising the mistake, they reversed the credit taken by them amounting to Rs. 65,600/-. The Original Authority held that ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... imported and 50% of the said amount is charged in view of the Notification No. 2/95-C.E., dated 4-1-95. He submits that the Cenvat Credit Rules, 2001 is a liberalisation over the Notification No. 5/94-C.E. insofar as the same relates to extent of Modvat credit available on the goods procured from 100% EOU and, therefore, he relies on the ratio of the decision of the Larger Bench in the case of Vikram Ispat cited supra particularly para-17. 6.1 I have carefully considered the submissions from both sides. When inputs are imported by the manufacturer, they are eligible to take Modvat credit/Cenvat credit of Additional duty paid which is calculated with reference to the Central Excise Tariff. If the manufacturer procures the inputs from a DTA....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le only for the credit equivalent to the additional customs duty. On the other hand if the duty actually paid by 100% E.O.U. on inputs cleared by them is less than the additional duty of customs payable on like goods the manufacturer shall be eligible only to the extent of actual duty paid by 100% E.O.U. The reading of first proviso to Notification No. 5/94 does not indicate at all that the credit of specified duty shall be restricted to the components of additional customs duty actually paid by 100% E.O.U. as excise duty. Had this been the intention of the Government, the proviso would not have been termed in the present form. In that situation the proviso should have provided that the credit of specified duty shall be restricted to the ex....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he case of Vikram Ispat cited supra has been rendered. The provisions relating to restriction of Cenvat credit relating to inputs received from 100% EOU in Cenvat Credit Rules, 2001 reads as under :- "(6) Notwithstanding anything contained in sub-rule (1), — (i) in a free trade zone or a special economic zone and used in the manufacture of the final products in any other place in India; or (ii) by a hundred per cent export-oriented undertaking or by a unit in an Electronic Hardware Technology Park or Software Technology Park and used in the manufacture of the final products in any place in India; shall be restricted to the extent which is equal to the additional duty leviable on like goods under Section 3 of the Customs Tariff Act, 19....