2010 (3) TMI 643

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....2 As a 100% EOU , the supplying unit was liable to pay duty in terms of the proviso to Section 3 of the Central Excise Act being "an a amount equal to the aggregate duties of customs which would be leviable under the Customs Act, 1962 or any other law for the time being in force, on like goods produced or manufactured outside India if imported into India……." The supplying unit paid confessional rate of duty in terms of Notification No. 2/95 which exempted "from so much of duty of excise as is in excess of the amount calculated at the rate of 50% of each of the duties of Customs which would be leviable under Section 12 of the Customs Act, 1962 (52 of 1962) read with any other notification for the time being in force issued under sub-sec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ted to the duty paid on the inputs or the capital goods by them equivalent to the additional duty of customs on like goods or the actual additional duty of customs paid by the 100% EOU equivalent to the additional duty of customs on like goods on the inputs or the capital goods whichever is less". This view has been upheld by the Commissioner (Appeals). However, the Larger Bench of the Tribunal in the case of Vikram Ispat has inter alia held that the clearances of goods by 100% EOU are not imports as defined under Section 2(23) of the Customs Act; the duty paid on removal of goods manufactured from 100% EOU is only excise duty; once it is held what is paid, is excise duty, the question of dissecting the said duty into different components s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....st 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 extent of portion of excise duty which is equivalent to the additional duty of customs paid by the 100% E.O.U. The phrase "equivalent to the duties of excise specified under (i) & (ii) above paid on such inputs" refers to the payment of (a) duty of excise under the Central Excise Act and (b) additional duty of excise under t....