2007 (4) TMI 49

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.... hearing both sides, we note that the appellants became a 100% Export Oriented Unit (EOU) on 19-11-2004 by way of conversion from DTA unit. Before the said date, they had taken 50% of the duty paid on their capital goods as Cenvat credit in accordance with the relevant Cenvat Credit Rules. The balance 50%of the capital goods credit was taken during 2005-2006, to the extent of Rs. 1,92,717/-. This ....

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....that, after 6-9-2004, there was no restriction for EOUs utilizing Cenvat credit for payment of duty on DTA clearances by virtue of an amendment brought to Rule 17 of the Central Excise Rules, 2002. It is further submitted that Notification No. 24/2003-C.E., dated 31-3-2003 had exempted all export clearances of 100% EOUs from payment of Basic Excise Duty leviable under Section 3 of the Central Exci....

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....unal's decision in Waterbase Ltd. v. Commissioner - 2005 (187) E.L.T. 346 (Tri.-Bang.), wherein the entitlement of a 100% EOU to take Cenvat credit was affirmed for the period prior to 6-9-2004. 3. After considering the submissions, we have found prima facie case for the appellants. After their conversion from DTA to EOU, prima facie, they were entitled to both capital goods credit and input-du....