2010 (6) TMI 441

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.... We are, therefore, not inclined to keep this old appeal pending any longer. 2. We have examined the records and heard learned SDR. 3. The appellant, a manufacturing unit in the Domestic Tariff Area (DTA), procured certain inputs from a 100% Export-Oriented Unit (EOU) namely M/s. Futura Polymers Ltd. during the period from September 2000 to February 2001. The CVD element of the duty of excise paid by the EOU on such inputs was Rs. 9,99,177/- in terms of the proviso to Section 3(1) of the Central Excise Act. Such amount of CVD (additional duty of customs leviable under Section 3 of the Customs Tariff Act) had been worked out at 50% of the CVD payable on like goods if imported into India. The appellant, however, chose to take credi....

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.... duty leviable on like goods under Section 3 of the Customs Tariff Act, 1975 paid on such inputs. The learned SDR has also referred to an identical provision contained in Notification No. 5/94-C.E. (N.T.), dated 1-3-1994. This provision appears in the form of a proviso to Notification No. 5/94 and is pari materia with the afore-mentioned provision of Notification No. 21/99. The learned SDR has also relied on GTN Textiles Ltd. v. Commissioner of Central Excise, Hyderabad-II - 2006 (205) E.L.T. 1060 (Tri.-Bang.) wherein the first proviso to Notification No. 5/94-C.E. (N.T.) was considered and it was held that the assessee was not entitled to MODVAT credit of the duty paid on inputs supplied by EOU in excess of the amount of CVD actually paid ....