2017 (7) TMI 268

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....inputs from their DTA unit to their own unit which is a 100% EOU. While removing such duty paid inputs, the appellant did not reverse the Cenvat Credit and cleared the same based on CT 3 Certificate. Revenue authorities were of the view that appellant should have reversed Cenvat Credit on the inputs which were removed to 100% EOU, hence proceedings were initiated and culminated in confirming demand of duty on such inputs alongwith interest and penalty was also imposed. 3. Ld. Counsel submits that identical issues in respect of their own unit was agitated by Revenue before the Tribunal in Appeal No.2015 (330) ELT 523 (Tri.-Bang.) at Bangalore Bench. It is his submission that in that appeal, the Bench held in favour of appellant herein and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ision. I have considered the submissions. I find that as submitted by the learned counsel, in the case of Solectron Centum Electronics Ltd., the issue before the Tribunal was whether the capital goods can be removed without reversing the CENVAT credit to an EOU unit availing the benefit of Notification No.22/2003-CE. Notification provides for clearance of the goods without payment of duty to 100% EOUs based on CT-1 certificate. In this case also as submitted by the learned counsel and evidenced by one of the CT-1 certificates produced, clearances were based on CT-1 certificates issued by the receiving unit. Therefore the only question that will be applicable is whether the clearance under Notification No. 23/03 would be proper or not. In....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ular issued by the Board wherein it has been clarified that inputs can be considered as excisable goods and clearance of the same can be placed on par with clearance of excisable goods. Even though Rule 19(2) of Central Excise Rules was not cited nor discussed by any of the lower authorities, I still feel that also will be relevant. According to Rule 19(2) of Central Excise Rules, any materials can be cleared without payment of duty by a manufacturer for export. Provisions of Rule 19(2) which provide for clearance of goods without payment of duty irrespective of the fact that they were manufactured by the assessee or otherwise in my opinion would cover the issue in favour of the appellant. Further another point which was submitted by the le....