2007 (5) TMI 93

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....yment of duty and took credit of the same. Subsequently, they supplied the same to M/s. Continental Technologies (P) Ltd. which is an Export Oriented Unit (E.O.U) without payment of duty or reversal of credit against CT-3 Certificate validly issued under Notification No. 22/2003-C.E. dated 31-3-03. The authorities below have held that the appellants are required to pay amount equal to the credit a....

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....al goods obtained by them was not useful for the purposes it was brought and it would have remained idle in their factory. By disposing of the same to the 100% E.O.U, the appellants minimized the loss to them and the impugned capital goods has also been put to productive use instead of lying idle. He states that the amount required to be reversed under Rule 3(4) is equal to the duty amount and hen....

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....as if it was a duty paid. Both sub-rules read together make it obvious that if the appellants reversed the credit, the 100% E.O.U. would have been eligible to take a credit in respect of capital goods. However, the cited Notification No. 22/03-C.E. subsequently allows a 100% E.O.U. to procure capital goods without payment of duty against CT-3 Certificate. Since a reading of both the sub-rules toge....