2006 (12) TMI 301

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....or the Respondent. [Order]. - The respondents herein are manufacturers of excisable goods viz. Plastic Film Capacitor falling under Central Excise Tariff Heading 8532.00 were paying Central Excise duty at the normal effective rate of 16% ad valorem on their final products and also availing Cenvat credit facility under Cenvat Credit Rules, 2001 in respect of duty paid on inputs required for the ....

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....ustoms Duty @ 16% ad valorem on the total of basic assessable value plus basic Customs duty i.e. 16% on 115 which works out to 18.40%). The allegation of the department was that in terms of Notification No. 2/95-C.E., only 50% of normal duty is  payable  and  therefore  the additional Customs duty component in the total duty becomes half  of the normal rate i.e. 8.60% whic....

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....goods produced or manufactured by 100% EOU 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, 1975 paid on such inputs or capital goods. It appears that the department has proceeded erroneously to apply the Rule as it stood in 2002 when the Rule read as under :- "Cenvat credit in respect of inputs or capital go....