TaxTMI 
TaxTMI 
2016 (9) TMI 39
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....Briefly the facts of the present case are that the appellant is engaged in the manufacturers of electronic connectors, parts of connectors, electronic connector harness and other IT products classifiable under Chapter 85 of the First Schedule to the Central Excise Tariff Act, 1985. The appellant procures duty paid inputs, capital goods and input services for use in the manufacture of dutiable final product and also avail CENVAT credit of duty paid on purchase of inputs and capital goods and service tax paid on input services. During the period August 2007 to January 2010, appellant procured certain inputs from a 100% EOU situated in the State of Karnataka. The supplier of the inputs has paid excise duty under proviso (ii) to Section 3(1) of....
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....f the appellant on the ground that the credit of duty availed in excess of additional duty leviable under Section 3 of the Customs Tariff Act equivalent to duty of excise specified in Clauses (i) (ii) (iii) (iv) (v) (vi) (via) of Rule 3(1) of CCR, 2004 is irregular and also justified the invoking of extended period. Aggrieved by the said order, the appellant is before us. 2. Learned counsel for the appellant submitted that the impugned order is contrary to facts, law and evidence on record and also contrary to the provisions of CCR, 2004 and Central Excise Act, and therefore not sustainable in law. He also submitted that the Commissioner (A) has not considered the judgments cited by the appellant which squarely covers the case of the app....
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....r the time being in force on the like goods produced or manufactured outside India, if imported into India, provided that the amount of duty payable shall not be less than the duty of excise leviable on the like goods produced or manufactured by the units in Domestic Tariff Are read with any relevant notification. It is, thus apparent that notification No.2/95 provides a minimum limit of the rate of duty which has to be paid by a 100% EOU. While clearing the goods to DTA and this limit is provided by the duty of excise leviable on like goods, manufactured outside 100% EOU. However, if the aggregate of duty of customs leviable on goods cleared by 100% EOU is more than the duty of excise leviable on like goods, a 100% EOU, has to pay more dut....
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....ared to any place in India is excise duty, the question of dissecting the said duty into different components of basic customs duty, auxiliary duty, additional duty of customs or any other customs duty does not arise. The proforma of AR-1A on which the reliance was placed by the learned D.R., cannot change the legal position that the duty levied on 100% EOU is a duty of excise and not customs duty." 2.1 He further submitted that Rule 3(1) of CCR, 2004 does not allow CENVAT credit of basic custom duty which is chargeable under Section 12 of Customs Act, 1962; whereas in the present case the duty charged by EOU is a duty of excise charged under Section 3(1) of Central Excise Act. Further there is no restriction under Rule 3(1) of CCR, 2004....
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....82. 6. In the present appeal also the duty indicated on the invoices show the same to be Central Excise duty though the method used for calculating the measureof such excise duty also include elements of customs duties. Therefore, the entire duty paid on the invoices will have to be considered as Central Excise duty paid under Section 3(1) of the Central Excise Act, 1944. It is not the case of the Revenue in these proceedings that CENVAT credit of the excise duty paid by the 100% EOU was required to be reduced under any other provisions of the Cenvat Credit Rules, 2004." 3. On the other hand, learned AR reiterated the findings of the Commissioner (A). 4. We have heard both the sides and perused the records and have gone throu....
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....oms Act, 1962 (52 of 1962) or any other law for the time being in force, on like goods produced or manufactured outside India if imported into India, and where the said duties of customs are chargeable by reference to their value; the value of such excisable goods shall, notwithstanding anything contained in any other provision of this Act, be determined in accordance with the provisions of the Customs Act, 1962 (52 of 1962) and the Customs Tariff Act, 1975 (51 of 1975). Rule 3(1) of the Cenvat Credit Rules, 2004 reads as follows:- Rule 3. CENVAT credit. - (1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of - ....